Make a Man-Champion or Dwarf-Champion
This will net you addition Might from the start, which increases your melee damage. Might is the opposite of Agility, which increases your ranged damage. Also, Race of Man gets a giant (~3000) self heal at high level. They also get a direct bonus to Morale. But now with today's 15k tanks and with your average player at 7k health, 3k isn't really that much.
However, Dwarf-Champions also get Might bonus. They also get a vitality bonus, which may also help you if you're trying to go for a balanced build. And, at high levels, through racial traits dwarves get Endurance of Stone, which adds 50% to Fire, Shadow, and Common migitations. This means that 1/2 of all Fire, Shadow, and Common will be asorbed you. Also at high levels, they get Dwarf-endurance, which gives a bonus to Vitality.
The most important stats for a build like yours are Might and Vitality
Vitality will increase your Maximum Morale (health). For every point of Vitality you have, you get three points of Morale. For instance, if you have 100 vitality, you will get 300 extra morale, in addition to your base morale (which depends on class/race) and other morale bonuses.
Might will increase your melee damage. Edit: Vitality also adds to your common migitation, and all other migitations (however, the other migitations will not receive as much bonus from just vitality)
Get an armor set when you're at a high level
One of these will help: http://lotro-wiki.com/index.php/Comparison_of_Champion_Armour_Sets
Deathstorm's Armor is seemingly for Survivability. Blade of the West armor seems to be for Damage. You might want to earn both of them and then use whichever one you'll be using.
However, as said above in a comment, you can't have the absolute maximum health and the absolute maximum DPS at the same time. To improve DPS, try the Fervor stance. However, this will burn down your health faster. To improve survivability, try the Glory stance. However, this will increase Threat generation, decrease damage output, and increase your defense ratings. This seems to be the "Tank" stance for Champions.
I don't think I've covered everything, so tell me if there's something I should add.