The Labouchere System
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This Labouchere money management system is a negative
progression system. It is also know as the 'Cancellation'
system. There are many different variations for the
Labouchere system.
With it's most basic form, you write down a series of
numbers; for example, 1 2 3 4 5 6. You can have a long or
short series and it doesn't have to be sequential; for
example, 1 1 4 4 7 5. You adapt your choice of a particular
series depending on the type of game you are playing and the
odds of the bet.
Each number represents the amount in units
that you are betting. You bet the first and last number.
Using the above example that would be the 1 and the 6, which
totals 7 units.
If you win, you then cross out the two
numbers and you bet the next two outside numbers. Again
using the above example the numbers would be the 2 and the
5. If you win again you bet on the next two numbers the 3
and the 4. If you win that too, you have completed one game
(aka 'coup').
If you lose, then you will add that one
number to the end of the series. For example, you lost the
first bet of 7 units (1+6). Then you would add the number 7
to the end of the series (ie: 1 2 3 4 5 6 7) and your next
bet would then be 8 units (1+7). Now, if you won the first
bet but you lost the second 2 and 5 , then this is what the
series would look like: 2 3 4 5 7.
If you take time to think about it, you
will understand that the series is completed, there is
always a profit. The down side of this system is that you
might end up betting large sums of money even if you start
with a small bet.
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