So I am looking to get into the local tournament seen using my current elven army till I get more of a feel for this. The one I am using know has served me pretty well so far but I'd like to see if it could be improved a bit.

At 700pts I usually run this
Gil Galad w/ shield
5 high elves w/ blades
1 high elf w/ banner
6 kings guard w/ spear and shield

Erestor
6 high elves w/ blades
6 kings guard w/ spear and shield

Storm Caller
6 high elves w/ blades
6 high elves w/ bow and spear

I am about maxed out in turns of numbers without sacrificing my one big hero. So its really a question of the hero and equipment choice and how to get the most out of the wiggle room I have left. Any advise would be appreciated.

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"Draw your sword with a heavy heart, but swing it with a heavy hand"

You have to mount Gil Galad. UNLEASH THE BEAST!!

I'd mount Gil-Galad and ditch the blades for either shields or spears and shields. D6 is pure gold against any S3, which is what seems to come up most in the UK.

The High Elf Stormcaller is okay, as although he can sometimes keep huge threats such as trolls etc. out the the game the whole time, equally, he can sometimes be next to useless. Maybe Arwen is a better choice, but maybe not, as Nature's Wrath is much harder to cast and even easier to resist. It's a shame he can't have an elven cloak, as being only D4, he's a prime target for shooting.

The only other thing is the sever lack of might, which you will most likely need a lot of if you don't want to get surrounded, so you will want to move first and be able to pick the fights in your favour, seeing as you'll almost always be outnumbered.
Alfred? I can obviously see why you wouldn't want to take him, but quite honestly, he'd be a huge help.

Just a few things to think about.
Hope I helped, LordElrond