I am trying to complete Form 6781 for year 2006. Am not sure if I need to carry back the losses. Here are the details:
1. Year 2006 1099B(RFC contracts)- The line 11 has net loss of $4500
Year 2005 1099B(RFC contracts) - The line 11 has net gain of $1200

Is it wise to Carry back OR Carry forward this loss? In other words, should this loss be entered in line 6 of form 6781? This is for tax filing year 2006.

2. As per section 475(f), only a Trader can Carry Back such a loss described above. In my case, I had an auto trade brokerage account where the trades of an Expert Trader were replicated. I guess then my tax Status is Investor? If yes, I can't Carry back the loss. In that case, the answer to 1 above is simple- the loss has to be carried OVER and can't be carried back. Need to confirm my understanding here.

3. Let's say, in Form 6781:
I enter ($4500) in line 5 and $1200 in line 6. What should be entered in line 7? Should it be ($3200) ? My confusion is about the word COMBINE for Line 7- combine Line 5 and Line 6. Does Combine mean $4500+$1200 OR $4500-$1200?

Thanks for your help.