To win properly, you need to use Sunder and Keening, but you don't need Wraithguard, as long as you can survive the damage. Basically this means you need 126 natural health, so you will never be killed in one hit. Then it's merely a question of finding some way to heal faster than it damages you, which is fairly trivial e.g. you could simply chug loads of healing potions.

But I'm proud of how my first character did it, it was simultaneously poetic and hackish (very fitting for this character). He never joined a great house, because I never saw any (in character) reason to do so. So his solution was to create twin gauntlets named "Wraith" and "Guard", with powerful area effect Absorb Health and Restore Health enchantments respectively. Then he gathered several ancestor rings. He used all the rings to summon five or six ancestral ghosts, then tuned both gauntlets on them. Wraith drew a large amount of health from each ghost, while Guard kept the ghosts from being destroyed. So effectively the ghosts allowed him to multiply the power of the enchantments, easily producing enough health to resist the Tools' damage.