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And why CB is used when it has the longest casting time of any of them and seems to do far less damage in that time. (I can get 15-20k in incinerates out in the time it takes to cast a 4k CB.)
I'm not sure why your chaos bolt takes longer to cast than incinerate, with zero haste and the Bane/Eberstorm talents it should put your CB at 2 seconds and Incinerate at 2.25 seconds, thus making CB the quicker cast.
In a quick test(I took all trinkets and enchants off that could give a short +damage increase including no imp hence why damage is low) I found the following:
Incinerate average hit=4264, average crit=8734
Chaos Bolt average hit=5090, average crit=9913
Conflag Average hit=5134, average crit=10729
The reason you should be casting CB on every cooldown is because it's a quicker cast time and hits harder than Incinerate, or at least it should, not sure why it's not for you.
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I'm thinking of maybe trying Soulfire in place of CB and see how that goes. What's the general consensus on Soulfire?
Soulfire, as it stands right now, should only be cast by a demon lock with Decimation. If you use it as destruction not only does it cost you a shard each time(pretty much limiting you to 32 casts) but the damage done per cast time is horrible. It's a 4 second cast that does slightly more damage than your other spells, double the cast time for slightly more damage is bad.
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So I have to ask why CoD beats out CoE'
Whether to put CoE or CoD depends on a few things. If you are the only caster you can use either. At lower gear levels CoD will give you more damage but at higher gear levels CoE will benefit you more as none of our talents buff CoD, so it's kinda up to you to decide which is better. However, if there is a mage with you CoE will be better as it increases their damage as well giving your group more dps.
There are 2 classes to be aware of when it comes to CoE, Boomkins and Unholy Death Knights. Both these classes have talents that do the exact same thing as CoE but they are tacked onto spells, meaning they will always be up. I see many Warlocks(damn pugs) who put up CoE when grouped with a boomkin/Unholy DK, it just turns into a meaningless debuff as they do not stack, CoD should always be used as long as they are alive.
While we are talking about other classes to watch out for, keep an eye out for shadow priests as well. Shadow priests and boomkins(I love boomkins) will add a dubuff that decreases the hit needed by 3%. What this means is that if you have a shadow priest in your raid you can switch out gear, get rid of that piece of gear that has 78 hit on it and replace it with something that has 78 haste on it. As long as that shadow priest/boomkin is there that 78 hit is worthless to you anyway, might as well boost your damage up.