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So me and a friend were thinking of starting on Warmachine/Hordes and I am planning on using Krueger the Stormwrath as my warlock. One real problem is that me and my friend don't know what we should use as a starting points limit, he said 5 would work but I feel it should be closer to 15-20. I would also like some ideas for what to bring with Krueger and how to use them in-game.

When starting the official battleboxes are around 11-12 points on average but going up to 15 is fine. As for what to bring, no idea.

There are alot of options with krueger as he is one of my favorite casters for Orboros.

First off you need to figure out what you want your list too do.
1. Heavy hitting?
2. board control?
3. Infantry Machine?

Your list also depends on the game play. Heads up or scenario.

Lets just start off basic for a 10 point list including warlock points bringing a total of 15 points for a mangled metal list, Only warbeasts warlocks allowed. Battlebox based..
Prime Krueger
Warpwolf stalker (heavy hitter)
Gorax
or
Prime Krueger
Ghetorix (upgrade kit, Plastic) (hard hard hard hitter)
Argus
or
Prime Krueger
Feral Warpwolf
Argus (animus for pathfinder and 360 vision), range spray 6 too paralyze a living model hit not very effiecient and too stop a heavy in its tracks for one turn.


Or a basic starter of warlock, warbeast(s) and unit Heads up match.
prime Krueger
Woldwarden (geomancy) slow but does hit like a truck
Unit of Gatormen Posse or tharn ravagers. Gatormen for undead models. and lightening tendracles. Tharn for living models, also great for lightening tendracles. Can buy for more attacks.

But too sum up good units with krueger.
woldwarden(geomancy) anti infantry Single Hp models
warpwolf stalkers heavy warbeast/jacks or clearing out some heavy infantry good model for tendracles.
Megalith anti infantry, good support for high defense models but use at higher point games.
Pureblood...spray spray spray!!! and two melee attacks...great warbeast for a pal.
Gorax it is hurt...charge or run for free!! animus is gross on a living beast...hits harder and more accurate...misses still can happen.
Argus Another cheap unit best against living models but can paralyze, combo strike for 16 base dmg.
Shadowhorn satyr...just give him a gorax for hitting power and accuracy then argus too see 360o and let the bodies hit the floor with the throw!!

Units
Gatorman posse...two attacks electro-leap...you say fried chicken?
Druids of orboros ...great too get those targets into your warbeasts charge lane too mess up for a turn...but druids are best for scenarios.
Tharn ravagers...good with electro-leap since then kill a living model and get tokens for more attacks.
wolves of orboros...just too keep your enemys at bay for a turn or two...don't expect more out of em. Tar pit

From my somewhat limited experience in playing circle, I would suggest picking up a squad of Tharn Blood trackers, not because they work with Krueger specifically, but because they are a very solid infantry unit with a short ranged weapon mastered weapon that can hit kind of hard. They also have amazing speed (the highest natural SPD stat for infantry - 7inches) and they are difficult to deal with as they are both high DEF and stealth.

They will make for a very solid infantry choice in many lists.