To me it appears that the Trace command only issues a carriage return (CR) and not a line feed (LF). A CR/LF combination would start the printing on a new line.
I don't know how to make the Trace command issue a CR/LF pair but it can be done by changing DIP switch settings on the interface car or in the printer itself. Here is an excerpt from the Imagewriter II manual:
"If the whole document printed on one line, it means that no line-feed character was sent to advance the paper. Any of three entities can issue line feeds: the printer, the software, and the interface card (if you have one). If you want single-spaced documents as your standard, you must set one and only one of
these entities to add a line feed after a carriage return.
The ImageWriter II’s factory DIP switch setting suppresses the adding of a line feed after a carriage return. Switch SW1-8 should be set to Open. If your system uses an interface card, set the interface card to add the line feeds. If your system does not print through an interface card (Macintosh Plus, Macintosh, or
Apple IIc), or if you don’t want to reset the card, set your software to send the line feed. Some software cannot do this, in which case you will have to reset switch SW1-8 to the Closed position to send a line feed after a carriage return."
I hope this helps,
Regards,
Jeff