Water-lore does create aggro when used on yourself, and a lot, but self-healing doesn't generate aggro on mobs you don't already have aggro on, so you have to tag them with AoE or something to start the healing aggro. Going yellow traits can work in situations tactical/ranged damage is bad anyway so you have to rely on melee dps (which isn't nerfed at all when going yellow) and you have no melee dps'ers. I went this way in bfe since without fire-lore 100% of the time I'd get one-shotted by a Melee High dev or the distributed attack. The 22% miss chance (running with spirit pet) on the troll also really helped, next time I try it Ill get a cappy in the group so I don't get 2-shotted at the end XD.
As for strategies, I rarely (read never) use tar outside the moors for the slow, if things can be cc'd I use AoE stuns like ents/storm lore and use bane flare during the parts they have stun immunity (if needed, most of the time I don't need the cc to survive). If you want to hold aggro in yellow traits you basically have to use your melee skills whenever they are off cooldown, and spend the rest of your time keeping debuffs/water-lore up. Of course if you have dps in your group that all do 3k+ dps single target you'll have a hard time holding aggro if you don't go full on dps yourself too, but this is rarely the case in pugs.
I've found the hardest part of LM tanking is getting accepted as tank in a group XD.
~Dwarrowdelf (Bomb Squad)~
Freeps: Vulcwen (R8 LM), Vulciel (lvl 100 RK), and some lower level alts.. Creep: Shadowweb (R6 spider)
My ideas on how LM should be: [url=https://www.lotro.com/forums/showthread.php?543323-LM-revamp-reconsidered]LM Revamp reconsidered[/url]