First of all, an alliance would really help here if they're good. Try to join one ASAP because simply being in the alliance can cause would be attackers to avoid you at all costs. You NEED to be in an alliance. If you want to make one then you need to promote it on World Chat day in and day out until it's large enough. Otherwise just join one.
Now that you're in a good alliance you should start concentrating on protecting your precious resources.
Put your forces on hide so they don't defend your city when you get attacked. It's pointless to build an army up just to have it destroyed over and over. You'll want to spend any extra money on your army while you build your buildings.
Now you'll want to upgrade your storage buildings as high as you can so when you get attacked you won't lose most of your resources. Remember that Gold is always up for grabs. You can't protect gold, so use it as often as possible. That means using all of it on researching and buildings and using ALL of the remainder to build troops.
You need to really be using ALL the resources you have. You don't want the bully to get any off of you, it's better to be using it on defense and offense than letting him have a single piece of wood.
Your power should be getting higher slightly. Remember to take note of the battle reports. You want to know what he's attacking with and how many.
If he's attacking with mainly Infantry units then you'll want to build archers. If he has Archers try to get cavalry and so on.
Eventually when you're strong enough you will be able to un-hide your forces and really surprise the guy. You'll make him lose WAY more resources than he could have gotten by attacking and he'll back off. After than follow the post I made on growing your city faster and keep building as many forces as you can afford. Eventually you'll be able to start plundering the bully that was getting you!