The large output wire will go to the ammeter. The lead from the battery will be alone on one ammeter terminal stud, the alternator's output wire and ALL electrical loads on the other. (If it reads back wards, swap the wires between the two posts.)
You can use the diode, as shown, or an "idiot lamp" or a 10-Ohm, 10-Watt resistor in the "switched excite" lead. Any ONE of those three choices will work equally well. Connecting it up that way provides a safety factor for the alternator, as well as eliminating the need for an extra switch to remember to shut off.
Are you still using the "one-wire" alternator?
In general, that will proably work, although there MAY be exceptions to those working 100% properly when set up as "3-wire" units.
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