It's actually worse than that. If you set it that high, it at least causes intersample modulation distortion. The only reason it's not painfully obvious is that Traktor habitually lies about it's gain staging and they're doing some things behind the scenes to try and limit that a little (e.g., they turn down the master 3dB if you're using external mixing).
It might be standard practice now, but it's not in the manual. And a few articles on NI's site actually explicitly say not to do it (they're wrong). I was out of DJing for a while. The last time I did these tests, the right place to turn them down was the channel gain if you wanted effects to sound right.
If you turn it down at the master, the song goes through the efffects units first, and they were all distortion effects more than whatever they were called. They fixed that, and everything got simpler. I'm pretty sure the problem before was that they switched Traktor's internal representation without correctly adjusting the reference levels that the effects were expecting.
It's a lot better/simpler this way, and I'm not sure when it changed. I think the last version of Traktor I used was 2.6.something. Maybe 2.8.something.
Well, 2-4 dB either way doesn't matter as long as you're not too close to 0dBFS or whatever the upper limit of analog gear is. That's what gain/trim controls are for.
The difference is that in my (and I think SlayForMoney's) case is that we're going through a DAC before the mixer. As soon as that happens, 0dBFS is set in stone and absolutely the loudest thing the signal can handle (i.e., headroom-the thing, not the settting-is all below that point).
Traktor uses 32-bit floating pecision internally, and I believe the Pioneer mixers do as well. Regardless of settings, Traktor will use the highest precision it can whenever it can. You can prove this easily...Traktor's recordings (even when fed off an analog input) are 32-bit float and whatever sampling rate you have set.
What that means is that it's almost impossible to clip traktor's mixer internally and it's at least very difficult to clip the DJM internally if not impossible. The DJM knows that and regardless of it's internal bit depth, it's scaling things according to some heuristic that gives a sane level.
It might be slightly more important/complicated for me because I use an analog mixer (I don't know what Slay uses). For it's headroom and noise floor to be appropriate, it's expecting a specific reference level. In a studio context, that level for unbalanced line level signals would be -10dBu. The 2016 appears to expect something more like 0dBu and has a little more headroom than my sound card. So, for me, pretty much anywhere between about -6 and about -30 on Traktor's output gain work about as well...and since it's not doing any processing (besides gain and summing), it's not as necessary that it's set perfectly. But, it's still worth getting it right for a bunch of little technical reasons.
And the difference is night & day. It's not just the headache thing. Running it the way NI's published advice says to and setting the levels on my Rane will effectively raise the noise floor, makes it easy to overdrive the mix buss, and somehow sucks all of the dynamics out of the music. Just turning Traktor's output down gives it the punch, warmth, and clarity that everyone wants.
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