So, as we are approaching a possible challenge, as well as being a bit ambitious, there are some thoughts I've been having with what challenges Ling Qi is most likely to succeed in: Duels, Squad v. Squad, Stealth/Larceny, Music, and speed/racing.
Duels
We are actually pretty good at duels surprisingly. We were able to edge out a victory against Ji Rong and put a good fight against Sun Liling. The key for picking a person for dueling, in my opinion, would be to pick someone who is trying to play a summoner build. We are exceptionally strong against mass units with FVM, especially if they don't have good perception and keep doubling back around. While we don't have Zhengui, who would be a massive power swing in our favor, I believe that we could pick the right person to duel and have an excellent chance at victory. An opponent needs a silver bullet to really deal with us, and that is a dispel art.
Squad v. Squad
We have some powerful support arts and our signature art does a lot of work against groups of people. While we do not have a great war skill, I feel that we could possibly eke out a win because of our strong support arts as well as our strong debuffing arts. It would be risky picking a person who specializes in group tactics to challenge, but should a person who doesn't specialize in group fights pick group fights on a mistaken assumption regarding our ability, then I think we can win.
Stealth/Larceny
This is possibly our strongest chance of success. When challenging someone, I would envision that this competition would be them protecting an item and us trying to steal it. Our tournament would not give a good indicator of our stealth capabilities, and it is quite hard to communicate how effective we can be in this area. Additionally, we are getting CDE, a level or two apparently, which will dramatically increase our ability to bypass traditional security measures as well as identify security measures. All in all, I feel the most confident in our this aspect of our capabilities.
Music
I feel that we are exceptionally good for our level at music. While we don't really have the happiest or upbeat songs, our ability to communicate emotions, concepts, and even locations is apparently excellent, given Shen Hu's reaction to our song during the party. Our tutelage under Zeqing has catapulted our ability to express emotions through song, and with Sixiang's help in composing songs we should be very strong in this area. My only fear is that since this is such an esoteric field for the Argent Sect, that the people we challenge won't pick this option because they know how good we are at it. And if they do pick the option, then it's because music is their specialty as well.
Speed/racing
Now, I know what a lot of people are saying right now, "but Thor, we aren't actually all that fast. How can we beat a dedicated speedster who would choose a race as their competition?" An excellent question with a very simple answer. We cheese them. The next level of SCS allows "One with Shadow" to last for a "persistent" amount of time. "One with Shadow" allows us to merge and occupy with shadows. If we can successfully merge with our competitor's shadow then they can take us all the way to the finish line with no effort on our part, and then at the last minute, we can teleport across the finish line. This can really only happen, though, once we have leveled SCS and not before, which can be a bit tricky timing wise. If that doesn't work, for whatever reason, then our ability to teleport to any shadow we can see of moderate size and CDE allows us to ignore almost all obstacles. Our gown which enables flight would also be of great help avoiding the obstacles on the course entirely.
Summary
I think that picking the right opponent will be crucial to our success, which is how the system is set up. Should we pick someone who is more likely to engage in personal duels, then we would want a summoner/debuffer as Sixiang and FVM dramatically swing such fights in our favor. A person competent in squad v. squad should probably be avoided as they are more likely to choose squad fighting, which we have the arts for but are woefully lacking in any skill for tactics/strategy to back those up. If we pick someone who is more likely to be a security specialist, then we should challenge them after we get CDE but before we demonstrate such knowledge publically. Music is going to be an unlikely pick, but I feel we have a strong advantage there, especially if we get to Green 2. A person who is likely to choose a race is also a possibility, but we should choose someone who lacks in perception abilities to leverage SCS's cheesy capabilities against them.
All in all, I think we have a good spread of possible challenges that we can succeed at, and should we challenge after reaching Green 2, SCS 7, and acquiring CDE then we should have even better odds at many of our possible challenges.