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I've been asking the same question recently and have found very little discussion about it or consensus on what works. I've managed two semi-finals appearances in the 64 team tournaments in the past week or two but have no idea what actually works.
The only thing I've found is that when I think I've managed to put together a good team I get bounced early and when I make a run it feels like I'm skeptical anything good is going to come!
Some things I've tried messing around with but remain uncertain of and would love to hear what others think:
I've tried an approach that leans toward drafting starters early to ensure I have a stronger pitching match up every time (usually a Perfect, 1 or 2 Diamond, and 2-3 Gold) and an approach that drafts starter in the middle (3-4 Gold and 1-2 Silver or even a bronze). Since going for lock down starting pitching hasn't yielded great results I've drifted toward drafting starters that should at least be competitive.
I've tried just drafting the best player available (as long as they can be used) and that seems to create some teams that I think are unbalanced but have performed reasonably well or I end up getting pounded.
I've tried having a lock down closer and ensuring my bullpen has at least silver set up men and bronze pitchers with high control. I've found no consistent way to set up a quality bullpen and it seems to be hit or miss no matter what.
I've tried to favor defense up the middle (especially since quality defensive ratings can be found more easily in later rounds) with power at the corners to mixed results.
I usually just end up trying to balance taking best player available I can slot in with making sure I have a reasonable degree of confidence my rotation and bullpen can hold up. Like others have said, it seems to be a crap shoot!
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