As I understand it that connection can be left disconnected. It is grounded when the alarm is armed, and if the radio's power is removed while that connection is grounded the radio disabled itself.

-J

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1991 350SDL. 230,000 miles (new motor @ 150,000). Blown head gasket

Tesla Model 3. 205,000 miles. Been to 48 states!
Past: A fleet of VW TDIs.... including a V10,a Dieselgate Passat, and 2 ECOdiesels.
2014 Cadillac ELR
2013 Fiat 500E.