The red handle is a valve that can open or shut the water flow through that line, but I don’t know why. I made the mistake one year of shutting that valve, thinking it made no sense for the pump to do the work of pumping water from the pool only to return that same water without first treating it. But the act of closing the valve left standing water in the line that froze and burst the pipe. The red handle is the replacement valve that I now keep slightly open to avoid a repeat of the frozen water/burst pipe problem. At the time, I wondered whether I should remove and plug that entire section rather than replacing the burst pipe and valve. And that remains my question today. Although shutting that valve does stop water from returning untreated (and then that water freezes if I forget to reopen it in the winter), opening it does not prevent water from running through the filter (i.e., the valve does not isolate any equipment while equipment is being serviced).