Over the centuries, in a game of chance with odds closely approaching the 50/50 mark (or 1 in 2) most successful gamblers have followed a certain formula. It is called a "double down" system and it plays out something like this:
- If a loss occurs the player doubles the amount of the pevious bet on the next play in order to hopefully win back the loss. If a player looses again, then he/she doubles down again. Now it's a double of a double! The stakes grow high very fast on a losing streak. The player, having limited financial resources, is soon forced to quit if he encounters a long losing streak. No one can keep doubling forever! The table (casino), on the other hand has unlimited resources and wins simply by outlasting every player's wallet. Also, at any given time, the player risks losing all his capital, while hoping to win only the amount of his first bet.
Our first goal is to minimize the losses. We want to start off with as little money as possible. Remember, our goal is to make the table lose all of its money, not the other way around. First pick a favorite outside bet category (one of: red, black, even, odd, high or low). Now concentrate only on this category and ignore all the rest.
The Labouchere system:
Let us start with 10 betting units. Please note that this could be $10 at a '$1 minimum bet' table or $5 at a 50cent table and so on. Starting session is 10 units, set up as follows (on paper, dont worry you are allowed to use paper and pencil in every casino, in fact if you don't have one they will give you one if you ask, nicely)
1 2 3 4
Every bid is the sum of the outside units. First bet is
1 2 3 4
the sum of the outside units, 1 + 4 = 5. Bet is 5 units. If win occurs, cross out the outside units. In this example I will cross or score out. So, if win occurs we score out the outside units
1 2 3 4
Following, bet the sum of the remaining 'outside' units. In this case sum of 2 + 3 = 5. Bet is 5 units. If win occurs, score out the winning 'outside' units
1 2 3 4
Nothing remains, so we've just completed our session. Total winnings amount to original 10 units.
Now let's see what happens when a loss occurs. We start with 10 units
1 2 3 4
First bet is 1 + 4 = 5 units. First bet loses. When a loss occurs we add the amount of the last bet to our series. Our line then becomes
1 2 3 4 5
Next bet loses... our line becomes
1 2 3 4 5 6
Hold on! Do you notice something? We are doubling down after losing. While adding some logic to the insanity, a losing streak will still guarantee us an empty wallet (whether we started with $10 or $10,000). A winning completion of the series guarantees us a "generous" (ouch) win of 10 units. Some pros have won fortunes this way. Many, many more have lost their shirts. The simple reason being that the table has a much, much heavier wallet than any player and can therefore outlast almost all systems.
The Reverse Labouchere system:
What if the roles were reversed? What if the player had unlimited resources? Is that possible? As amazing as it may sound yes it is possible!
Let us take the same Labouchere system and try playing it in reverse. In other words, let's score out bets on losses and add-on bets on wins. We start with the same 10 units
1 2 3 4
A win occurs, we add on the amount of the last bet
1 2 3 4 5
another win occurs, our series becomes
1 2 3 4 5 6
a loss occurs, so we score out instead of adding
1 2 3 4 5 6
another loss
1 2 3 4 5 6
a win...
1 2 3 4 5 6 7
a loss...
1 2 3 4 5 6 7
a win...
1 2 3 4 5 6 7 4
another win...
1 2 3 4 5 6 7 4 8
... and so on.
Several things become apparent. If we hit a long losing streak and end up scoring/crossing out all of the units in our series we are never in any danger of losing more than the original 10 units. If, on the other hand we hit a winning streak, we run a very good chance of winning all the money that the table has to offer, or breaking the table. This is because we are using the table's own money against itself. In any given series, anything over the original starting 10 units came from the table, not from the player's wallet.
Congratulations ! The table's unlimited resources have just been placed in your hands. Losing streaks don't last forever, neither do winning streaks. However, as the table jumps from one to the other and back, we are forced to cross units, then add, then cross, then add again until our betting stakes (or uncrossed units) left are so large, that they are pushing the table limits. Now that you are playing with the table's money you are suddenly able to withstand the long unfavorable streaks, in wait for the favorable ones.
