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Most decoders do have a power rating. Older locos can take more power to run but, strangely, this power curve is not linear. Start up can consume power as can the load on the back. Full speed running also makes the chip hot. In between these two extremes is a happy medium.

Most of us enjoy running locos at more prototypical speeds for the sorts of layouts that space considerations force on us. This is particularly true of steam and even Britannias which had poorish brakes for their weight and relied on not entering situations at speeds that required heavy braking anyway.

Most decoders are adjustable for speed. There are two ranges of CV's 2, 6 and 5 which control start voltage, mid and top speed. The max value for top speed in CV 5 is 255. If a speed table is enabled then this value will be in CV94.

Most express steam engines such as the Brits would only reach speed on a long gently graded and curved track with no junctions or turns within miles. I think one would need about 70 ft by about 50 ft layouts to enable such speeds realistically.

Dcc is a revelation in terms of slow speed power and prototypical acceleration rather than the sudden flying starts and unprototypical speeds that DC has traditionally offered.
 

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Mark,

The strict answer to your post is no, it is not absolutely necessary.

Richard is also right. Quite a few locos seem to run on chips better without any of the manufacturers electrics at all.

I have left them in on some and taken them out on others and I really believe that the quality of the chip dictates more than the removal of any capacitors.

I had to leave the capacitor in on a Hornby Q1 as when I snipped it, post install, the loco died. Had to solder it back in!!
 
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