In my current campaign i field a full stack of dragoons (1 General, 4 6lb horse artillary, rest dragoons) as Raiders operating behind my enemies lines.
They are great at out manauvering the general enemy stacks (ive noticed very few cavalry units in AI stacks) and you can take the best positions easily.
Dismounted dragoons are smaller line infantry units - they get fire by rank and drawn into lines of 3 can put out some decent fire... but without the numbers of line infantry they cannot withstand the same volleys. Their advantage is you can move them around the map till you have them in an area where the enemy cannot use their weight of number to effectivly crush them (for example as Garrisons in buildings or behind walls)
Mounted they... well suck compared to anything other than the most basic Cavalry - great for running down fleeing units but dont expect them to break a formation - they will be butchered
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