When you first face Cloud, the match will be very challenging since you are limited to minimal abilities. Thankfully, the outcome of this match won't affect anything. Here is the strategy for when you face him in the regular tournaments. Be sure to equip the guard and counterattack abilities. These are vital to winning the match. Cloud will use one of three attacks. Before every attack he will scream, making it fairly easy to detect and defend his attacks. One of Cloud's best attacks is the Sonic Ability. Either Dodge Roll or Guard against the attack (I guard), and then launch a counterattack. Another one of his attacks in just a normal sword slash. You can guard against this also, and follow up with a counterattack to a combo. The third attack Cloud uses is when he jumps up into the air and comes down right on you. You can guard against this if your timing is good, but it is easier just to jump or dodge roll out of the way. Cloud leaves himself open for attack most of the time, so getting a hit in isn't a very challenging task. When you decrease his HP bar to less than half, he will use his wing to fly around the ring and slash you from behind. His is invunerable at this point. You can attempt to dodge these slashes with dodge roll, or if you time it right, you can guard. Once Cloud lands deliver the final blows.
Hercules
HP: 450 EXP: 700
There is no real strategy for fighting Hercules. Just remember that he is invulnerable when he is glowing yellow. Throw boxes located around the ring at Hercules to stun him and "mortalize" him. After you inflict a few combos he will say "try this on for size" and attack with a devastating energy circle. Try not to be in the radius. Most of Hercules' attacks can be blocked, such as the "raging bull" technique. When he spins in a circle you can "guard" but it will only protect you. When he is finished spinning, he will be in a dizzy state. Take this oppurtunity to attack with a few combos. Repeat this process over and over until you defeat the Coliseum Champ!