I have never found Autotrace to be very useful. When it does work the results are poor. My workflow is to use Adobe illustrator to trace the image and save as a DXF. Once opened in Draftsight I can then copy and paste the artwork into a Solidworks sketch. Longer process but much better results and more control.
Attached file includes a sketch block for the logo produced from the above method.
raise sketch.SLDPRT.zip 74.0 KB