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Your next combatant is Trooper Alanius. Once Felms has given you the initial brief, you may wish to place a bet on the outcome with Podric Belfort. When ready, ask about the trooper again to set up the fight, then proceed into the pit via the entrance behind and above Felms. Defeat Alanius Calatus and then return to Felms for a reward.
Your aim is to reduce your opponent's health to 20% or under without killing him. If he succeeds in doing this to you, you lose, and will need to spend three rounds fighting beasts before being permitted to go onto the next fight. Leave the pit while the fight is active, and it will be forfeited. Kill your opponent and you will be expelled from the arena.