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I played through it with this hero strategy:
Without stopping anywhere or capturing the lower castle, I went straight to the left castle through the elementals (using a clone, I cleared it without any losses).
To the right castle, where the strong elf is located, there are 2 paths: (through the middle and through the top). The elf attacked me almost immediately through the center, and I attacked his castle through the top. I captured it (which is very desirable) on the 1st day and bought 2 dragons (the elf apparently only built a dragon lair and was running around with only 1) and everything else. I didn't rebuild the left castle, so I had enough money. Basically, that's the end of the story - you defeat the elf, take back the left castle
Without stopping anywhere or capturing the lower castle, I went straight to the left castle through the elementals (using a clone, I cleared it without any losses).
To the right castle, where the strong elf is located, there are 2 paths: (through the middle and through the top). The elf attacked me almost immediately through the center, and I attacked his castle through the top. I captured it (which is very desirable) on the 1st day and bought 2 dragons (the elf apparently only built a dragon lair and was running around with only 1) and everything else. I didn't rebuild the left castle, so I had enough money. Basically, that's the end of the story - you defeat the elf, take back the left castle