Lowest possible Pokemon level to beat Lorelei in Pokémon Red/Blue?
Since the AI in Pokémon Red/Blue was programmed to always use a "super effective" type attack, and Lorelei's lead-Pokémon Dewgong knows Rest (Psychic), which does no damage, this screams for setting up on Dewgong.
Since the type Psychic is super effective against Poison, I came up with this strategy:
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Teach a Lv 2 Nidoran♂ the following moves:
- Toxic
- Double Team
- Substitute
- An attack - preferably one with high PP.
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While Lorelei's Dewgong is out:
- Set up 6 Double Teams
- Set up Substitute,
- Hit Dewgong with Toxic
- Spend turns wasting PP from the 4th move until Dewgong is finished.
From there, keep poisoning the rest of her team with Toxic, keep Substitute up and heal with potions.
Is there another strategy that doesn't rely heavily on avoiding hits?
An important consideration in this strategy is that Dewgong can use Rest, healing itself from Toxic. Reapplying Toxic then resets the counter. As opponents in 1st Gen have unlimited PP, this renders stalling for Rest PP impossible. Thus Nidoran cannot KO Dewgong with Toxic.
A workaround is to use a OHKO move as the 4th move. This means that after setting up Double Team + Substitute + X Speed, you can OHKO Dewgong bypassing Rest. NidoranM can achieve this even at level 2 with Horn Drill. As Dewgong spams rest, you can set up 6 X Speeds and X Accuracy to make OHKO moves always hit. The X Speeds, alongside the badge bonus, and high Speed DVs and EPs (to reach 7 base Speed at level 2), enable NidoranM to outspeed and OHKO Dewgong. With the experience gained, it can then outspeed the rest of Lorelei's team including Jynx, her fastest Pokemon, and OHKO them before they move. In fact, with this strategy, the only move NidoranM needs is Horn Drill since the opponent will never attack!
Here's a link to SAJW's video demonstrating this strategy in-game.