I have seen some with them in magazines. I like them. When I build my permanent layout, I'll put some on when pulling some passenger cars. I think it'll look cool.
It's your locomotive and your layout, so if you want to do that, have at it. If I remember correctly, green flags meant " second section following" and white flags meant "extra". Someone may correct me on that. You might check a rule book for your favorite road.
I plan on making flags for mine eventually. I'll probably only make a white set and an American Flag set (I run it with my MPC Pennsylvania passenger cars, so I'll need it for the presidential car).
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