Both forms of Hoopa have to deal with the problem of having an embarrassing 4x weakness against a fairly common attacking type. Knock Offs and U-turns can be found everywhere, and it doesn't help that both forms also sport rather low 80/60 physical defenses. Confined and Unbound hit 70 and 80 base Speed, respectively, neither of which are particularly impressive. Hoopa also suffers from being stuck with the ability Magician, which proves useless without relying on tricks like Trick or Fling. Hoopa's potential lies in excellent mixed offensive stats and a great 130 Special Defence, allowing it to function as a potent wallbreaker with great STABs, as well as handle Special Attackers not carrying a 4x effective move.
Abilities:
Magician: Hoopa's only ability, and a rather disappointing one at that. As aforementioned, needs Trick or Fling to function. If only Gems were available... Ah, but the nerf to their boost hurt their viability, anyway.
Confined
Although its Confined form comes with 80 BST less than Unbound, 50 of that went into boosting physical Attack, a stat it does not need so terribly much except for mixed attacking. Confined Hoopa is generally fine sticking to attacking on the special side anyway, as its Ghost typing doesn't provide any notable physical STAB, except for perhaps Phantom Force, although it is generally too unreliable to be used. Unfortunately, its signature move, Hyperspace Hole is pretty useless with only 80 BP, its Protect-piercing capabilities outclassed by Psyshock's physical defense targeting and Psychic's higher BP. (Hyperspace Hole has some merit in doubles, ensuring Hoopa will be able to deal damage to its target.) Its unique typing also makes Confined hard to use: a 4x weakness to two very common attacking types, Ghost and Dark, make Hoopa extremely vulnerable to revenge killing, especially by Pursuit trapping.
Tearing Holes into Their Walls (Even without Hyperspace Hole)
Item: Life Orb/Leftovers
Ability: Magician
Nature: Modest (+SpAtk, -Atk) or Timid (+Spd, -Atk)
EVs: 252 HP/252 SpAtk/4 Spd or 4 Def/252 SpAtk/252 Spd
- Psychic/Psyshock
- Shadow Ball
- Calm Mind/Nasty Plot
- Focus Blast
Hoopa takes advantage of one of two great boosting moves to set up and destroy walls standing in its way. STAB moves coming off of 150 SpAtk boosted by nature are very powerful, especially with once Hoopa sets up. Focus Blast is Hoopa's best coverage; I personally despise its accuracy, but there's really no other Special attack that matches it. The only other thing covering Dark types is Signal Beam, which is vastly inferior regarding its BP and general type matchups. A Timid nature with 252 Speed EVs can be run for a more typical set, since, considering its 70 base Speed, Hoopa's tying with Metagross, and outspeeding threats like Tyranitar and Scizor.
Tricky Little Ghost
Item: Choice Scarf/Choice Specs
Ability: Magician
Nature: Timid (+Spd, -Atk)
EVs: 4 Def/252 SpAtk/252 Spd
- Psychic/Psyshock
- Shadow Ball
- Trick
- Destiny Bond/Thunder Wave
With a Choice item in hand, Hoopa is free to use a classic Trick set to ruin the enemies momentum. Although Scarfs are usually seen on Trick sets, the boost from Specs makes Hoopa a force to be reckoned with, and is better at crippling any physical attackers that expect to receive a Scarf. The fourth move is somewhat filler; Destiny Bond can nab some KOs on opponents that would Pursuit trap and shut down Sucker Punch, while Thunder Wave has always been a great utility move that Hoopa can use to good effect once its Choice item has been Tricked away.
Unbound
Hoopa's Unbound form, sporting higher stats and a Dark type instead of Ghost, typically enjoys more freedom than Confined, outspeeding more threats, getting enhanced mixed attacking capabilities, and taking neutral damage from Dark and Ghost types. It only needs to watch out for powerful physical Fighting type moves, which it is no longer is immune to, and the large amount of speedy Pokemon that carry U-turn, which now easily OHKOs Hoopa. Unbound also gets to enjoy an actually viable signature move, Hyperspace Fury, which, with 100 BP, will always be stronger than Knock Off, and provide more consistent damage output. Its low PP isn't too much of a problem, since it can't be stalled out by Protect. The one stage reduction to physical defense is a bit worrisome, but all things considered, Hoopa doesn't take physical hits well anyway.
*Confined's aforementioned sets can be run by Unbound, just with Shadow Ball replaced by Dark Pulse for proper STAB. Hidden Power Fire can also replace Focus Blast as coverage, since there isn't as much a need to deal with Dark types anymore, and it also now OHKOs even bulky variants of Mega Scizor.
Fury of the Fiend
Item: Life Orb
Ability: Magician
Nature: Jolly (+Spd, -SpAtk)
EVs: 252 Atk/4 Def/252 Spd
- Hyperspace Fury/Knock Off
- Zen Headbutt
- Fire Punch/Ice Punch/Gunk Shot/Drain Punch
- Fire Punch/Ice Punch/Gunk Shot/Drain Punch
Like Confined's first set, except being physical and having no set up moves available. First two moves are STAB, while final two moves are whatever coverage you need. Fire Punch helps deal with Ferrothorn and Scizor, and will OHKO some less bulkier Scizor variants. Ice Punch decimates Dragon types; that goes without saying. Gunk Shot takes care of Fairy types. Drain Punch can take care of Steel/Rock types while having the nice bonus of healing some HP.
Six-Handed Schemer
Item: Choice Scarf/Choice Band
Ability: Magician
Nature: Jolly (+Spd, -SpAtk)
EVs: 4 Def/252 Atk/252 Spd
- Hyperspace Fury/Knock Off
- Zen Headbutt
- Trick
- Destiny Bond/Thunder Wave
Another physical swap of an aforementioned set. Fairly self-explanatory, although if you're running Knock Off, be careful not to use it on a foe you gave your Choice item to and free them from the lock.
Mischievous Djinn
Item: Iron Ball/Any Fossil/Flame Orb/King's Rock/Razor Fang
Ability: Magician
Nature: Jolly (+Spd, -SpAtk)
EVs: 4 Def/252 Atk/252 Spd
- Fling
- Hyperspace Fury/Zen Headbutt
- Thunder Wave/Zen Headbutt
- Gunk Shot
Despite it being a rather desperate way of trying to utilize Magician, Fling serves it purpose of simultaneously throwing away Hoopa's item and stealing away the opponent's at the same time. Item choice is important here, as Iron Ball serves as a powerful 130 BP Fling at the expense of initially cutting Speed, the fossils all give 100 BP Flings making them effectively Hyperspace Fury without needing it in the moveset or using up its PP, the Flame Orb creates a weak, although Burn-inducing Fling (a 100 accuracy Will-o-Wisp with some damage, basically), and the Rock/Fang creates a flinching Fling, acting like a makeshift Fake Out with the bonus of stealing the opponent's item. Zen Headbutt is there in case you want more than just Dark STAB. Gunk Shot targets the Fairy types that would resist Fling. Thunder Wave serves as decent utility, as well as a panic button of sorts against enemies that would laugh at Magician+Fling antics (e.g. most Megas and Guts users).
Unleashed Breaker
Item: Life Orb/Expert Belt
Ability: Magician
Nature: Hasty (+Spd, -Def)
EVs: 88 Atk/168 SpAtk/252 Spd
- Psychic
- Knock Off
- Gunk Shot
- Hidden Power Fire/Hidden Power Ice
And finally, we arrive at the awaited mixed attacking wallbreaking set. STAB is divided between physical and special. Psychic is Hoopa's most powerful Psychic type STAB. Knock Off is an important tool for breaking Eviolite walls and being an excellent disruption in general. Gunk Shot takes care of the Fairy types that pose a threat to Hoopa and can tank either of its STAB moves. The last move is whichever Hidden Power you desire. Fire to care of troublesome Steel types, or Ice to take of Dragon type threats.
Other Options
Hoopa, for all its offensive prowess, still has access to a decent support movepool.
Skill Swap passes on Hoopa's mediocre ability to the enemy, and, hopefully, brings in a better ability.
Wonder Room's exchange of physical and special defensive stats can screw with an opponent's attempts to hit Hoopa on its frail physical Defense.
Dual Screens allow Hoopa to provide helpful team support.
Thunderbolt and Energy Ball are nice moves with great BP, but the coverage they bring isn't too impressive.
Double and Triple Battle Options
Hoopa's signature moves, Hyperspace Hole and Hyperspace Fury are able to simplify prediction thanks to ignoring Protect. Dual screens and Ally Switch help mitigate the damage your opponent is able to dish out.
Partners
Becuase of Hoopa's physical frailty and somewhat mediocre Speed, it enjoys partners that are able to set up Reflect or Tailwind. Fast Fighting types with Mach Punch or Vacumn Wave can help Confined form deal with Sucker Punchers, and most fast, powerful Pokemon carrying Fire Blast as coverage can help Unbound deal with Scizor and other U-turn threats.
Counters
Confined doesn't have much Speed, so there are a large list of notable threats that can OHKO easily with a 4x effective move. Just about anything with Sucker Punch or Knock Off threatens Hoopa. Bisharp can come in on any move that isn't Focus Blast, and threaten with Sucker Punch and/or Pursuit. Bulky variants of Scizor can take two hits from Shadow Ball and OHKO with Knock Off. Alakazam can take any hit that isn't Shadow Ball and outspeed and OHKO with its own Shadow Ball. Landorus can take any move Confined dishes out and OHKO with Knock Off.
Unbound is a little harder to deal with. Higher offensive and Speed stats means that it can wallbreak and outspeed Pokemon that would normally give Confined Hoopa trouble. In addition, there aren't too many things that enjoy being hit by a STAB Knock Off coming from 160 base Attack, even if not fully invested. Still, any Pokemon that can manage to take a hit and retaliate with any Bug type attack or a decently powered physical attack should make quick work of Unbound Hoopa. Since there aren't too many things that can take two hits from mixed Hoopa, it comes down to picking something that can take a predicted hit and outspeed for an easy kill. Examples include Talonflame, Garchomp, and banded Dragonite or Scizor.