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No, there's no "recommended points" for your digimon. 

The "power" on free battles reflects roughly their overall stats, that means that a digimon with 100 power will have 100 attack/defense/etc.

This is the third time you repeat that your champion digimon did a thing that your ultimate cannot do, i get it. There isn't much point saying how it works (besides, i don't know) because what you gotta do is train your ultimate digimon more, eventually his stats will catch up with his new form and it'll start dealing greater damage than your champion did.