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I am starting to build an Alpha Legion army and was wondering what units are considered fluffy? Obviously cultists are going to be at the forefront, but I have no idea if they commonly use Daemons/Daemon Engines like Maulerfiends, Venomcrawlers, Possessed, etc. Do they use any psykers in general?

The Alpha Legion will use what it needs to. It's a fractured Legion, so no two Warbands will be exactly the same. There's speculation that they may all be working on their own individual agendas, their own particular way, with their own motivations.

So, one of the more fluffy options you can go for is a unit of Chosen with Combi-Bolters. Instead of Chainswords, give them knives. These are now your Headhunter Kill Teams (you can still get the Forge World kit, if I'm not mistaken).

Another neat trick is to make your terminators into Lernaean Terminators. Those kits are available from Forge World, too (Counts as regular Chaos Terminators).

Additionally, other units that make sense for Alpha Legion are... well, whatever you want them to include. That's what's great about the Legion- they can be as HAIL THE DARK GODS chaos or as HYDRA DOMINATUS covert renegade as you want them to be.

Alpha Legion hasn't ever really had a signature unit, except for Cultists, which is everyone's signature unit at this point.

I tend to play them as very infantry heavy these days and tend to build around staying at range for the most part.

The Lord Discordant with the new rules is a very useful tool, pretty easy to stack him up to a -4 to be hit at range, -2 to be hit in melee, -3 to be hit in melee by vehicles.

The fluffy-est Alpha Legion units are Loyalist Space Maines. So make sure you have some Ultra-smurfs in your list here and there.

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Pretty much "Signature Alpha Legion" Units are all gonna be 30k stuff. Even the one named 40k Alpha Legion character doesn't have a model.

Non sm personel or agents.
Yes Al makes use of them.
The best way probably would be to include a vanguard of R&H stalker marauders with sniper rifles.

You could always have Chaos elites for interesting armies, such as Khorne berzerkers who kill and rampage, but for no apparent agenda. Rubrics who cast spells for no apparent reason. Plague Marines who spread random diseases, and Noise Marines who foster destruction and decadence wherever they go. It is said that the Alpha Legion has ensured that the Imperium is corrupt and rotten, and this could be one way to show it in your armies, with different god-specific soldiers all working together towards one chaotic purpose.