Apparenty these Chinese 2-stroke kits have the CD ignition box (coil)'s power lead in three different colors: blue, green, or red... the other two wires are black and then white. The white wire produces some small wattage of juice for lights? but no one's been able to get much from the white wire.
To properly "kill" the ignition system and stop the engine, I've seen it said in more than one thread here to ground the power wire that goes to the ign box: either the blue, or in some cases green, or in others, red.
My motor's wires were blue, black and white; I taped off the white wire and don't use it at all. My kill switch/button simply grounds the engine's blue wire.
To test the grounding of that particular circuit, mount the kill swich where you want it (
mine's on the handlebar right by the clutch lever), run the wire down to meet the, in your case, red, wire... but don't connect the two just yet.
Then use a multimeter's continuity function to listen for a beep when the button is pressed while one of the multimeter's leads is touching the engine block and the other lead is touching the kill switch's wire. This way, you know the the ground is good from the switch itself all the way to the block through the handlebars and frameset.
Those who haven't tested this ground path have sometimes been jolted by a good little shock. We don't want that. It's rather annoying... LOL.
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[EDIT:] Are you saying your kill switch has two wires? If so, then the black wire should go all the way from the switch to any bolt on the engine... and the kill switch's red wire should be connected to the ign box's power wire (either blue or green)...
There... I hope that is less confusing. Hahaha...
Good luck!