How to set up my MIDI preferences properly?

Um, local on/off just turns the PSR's own sound source off, which is useful when you want to use the keyboard just as a controller. In order to get its sound to your computer, you'll need to connect the audio outputs to your soundcard. MIDI is only control data, it doesn't transfer audio at all.
 
Thank you very much!! lost a lot of time seeking for the answer))

and one last question, can this "Local" be set up on off by default or everytime I turn on the power I should choose off?
 
Um, local on/off just turns the PSR's own sound source off, which is useful when you want to use the keyboard just as a controller. In order to get its sound to your computer, you'll need to connect the audio outputs to your soundcard. MIDI is only control data, it doesn't transfer audio at all.

Agreed, but the question did seem to be focused on having the keyboard play sounds inside of the daw, not necessarily to have the sound of the keyboard show up in the daw itself.

Thank you very much!! lost a lot of time seeking for the answer))

and one last question, can this "Local" be set up on off by default or everytime I turn on the power I should choose off?

It depends on what the power settings are set to - i.e. if it is able to actually store parameter setting such these between power cycles due to internal battery backup of or eeprom storage of the system settings. Some keyboards do, some keyboards don't
 
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