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Hello, new to WHFB so im trying to understand the total armor value of chaos knights...

CA base 4+
W/ shield +1
On steed +1
W/ barding +1

making the chaos Knight a 1+ armor????

yup

Ayep. Makes 'em pretty fun to try and kill. The terminators of WHFB, essentially.

Just remmeber a roll of "1" is always a fail for armour saves.

Is it normal to run these in blocks of 5 or 10?

In 7th you usually saw blocks of 5... in 8th I imagine you might see a block of ten, but that is alot of points spent on the one unit. They would still be effective in blocks
of five, but your strategy on their use would have to change. They probably wouldn't break a block of infantry, but unlike most other cavalry (with rubber lances) these guys
can continue to hit hard in every round. I'd give a test run with both 5 & 10 and see what you think fits the rest of your army list.

10 knights, with an exalted on steed, deployed 6x2. Rock hard unit and the bane of my empire army atm