I also find that it's hard to make these formations work in FM16 so I'd recommend that you try something different...
 
When using diamonds, my observation has been closing down high for the central midfielders is problematic because it tends to make them defend like one man chasing after the ball. It seemed to be solved by ordering all of them, or at least the non DMs, to close down less (may be much less in some cases). Though I've not played much with diamond formations so I didn't get to have a good look at the attacking side, I feel confident in saying you may also want to use individual instructions to make the players at the sides of the diamond to play wider and create space or you may have the same problem of defence in attack: that the four of them move so close that it's like they were a single player making it as if you were playing with eight men.
 
Could you upload a screenshot of your average positions? The first thought is that too many throw themselves forward and the "holding" players are both in aggressive roles.

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I also find that it's hard to make these formations work in FM16 so I'd recommend that you try something different...

I’d rather agree with that because I also tried it in FM16 and had no luck at all.
 
You have probably double the amount instructions you actually need and it is quite possibly making the tactic worse.

The main problem is that the concept of space is completely disregarded.

In the first, you have 4 players bunching up, with the fullbacks eventually joining them too. There won't be much space and all the opposition has to do is sit deep.

The second is extremely narrow, so all the space on the flanks is unused. You could also do with 2 link players up front, rather than 1. It also lacks someone who will sit and control midfield and recycle possession.
 
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