## Reverse Labouchère

#### Strategy principles

The **Reverse Labouchère betting system** is a positive progression version (increase bets following wins) of the original version of the classic Labouchère system.

Understanding the mechanisms of the classic Labouchère method makes it easy to apply the reverse method. Just inverting the rules, baring the bets on the sequence following the losses, and adding the last bet played to the sequence following the winnings, see the rules below.

The **Revrese Labouchère betting system** requires great rigor in its application. It remains very simple to understand. Like the other systems with positive progression (Paroli, Reverse d’Alembert), the Revrese Labouchère betting system reduces the risk of big losses.

#### Rules of the Reverse Labouchere

Although it can be applied to any type of betting; sports, horse racing or even in trading, the **Revrese Labouchère betting system** works better with double odds, the same chances of loss or win.

Before starting, the first thing to do is to divide the unit of betting into a sequence of numbers. Theoretically, the gambler is free to choose the division he wants. We will see later the importance of the distribution of this sequence.

For example, for a bet unit of $10, a possible division is 1-2-3-4. The sum of these four numbers equals 10. Note this sequence before you start.

**Quatre règles :**

- For each bet, the amount to bet is the sum of the first and last digit of the sequence, in this example the starting bet is 5 (1 + 4)
- Following a loss, we bar the first and the last digits of the sequence and we continue, in this example we bar 1 and 4 if we win. The sequence becomes 2-3 and we replay 5 (2 + 3)
- Following a win, we add the last bet played at the end of the sequence, in this example we would have added 5 at the end of the sequence 1-2-3-4-5
- The goal is to bar all the numbers in the sequence (finish the cycle). Then start a new cycle with the same starting sequence

A clear example is the best way to understand this system :

#### Example

In this example simulated on GSimulator, played Odds are **2 (US +100)**, probability **50%** and the bet sequence is **1-2-3-4**** **:

# | Sequence | Cost ($) | Result | Win ($) | Bankroll ($) |
---|---|---|---|---|---|

1 | 1-2-3-4 | – 5 | 0 | – 5 | |

2 | 2-3 | – 5 | 0 | – 10 | |

3 | 1-2-3-4 | – 5 | + 5 | – 5 | |

4 | 1-2-3-4-5 | – 6 | + 6 | 1 | |

5 | 1-2-3-4-5-6 | – 7 | 0 | – 6 | |

6 | 2-3-4-5 | – 7 | 0 | – 13 | |

7 | 3-4 | – 7 | 0 | – 20 | |

8 | 1-2-3-4 | – 5 | + 5 | – 15 |

- In this example, we start by betting the sum of the first and last digits of the Labouchère sequence, 1 + 4 = $5.
- Following the loss of the first round, we delete the first and last digits of the sequence, it becomes 2-3.
- Following the second loss, the sequence is empty following the deletion of the two digits that compose it, we start again with a sequence reset 1-2-3-4.
- Following the third and fourth winning bets, we add the last bet to the sequence, respectively $5 and $6.

#### Benefits and risks

The advantage of the **Reverse Labouchère strategy** is that it would reduce the risk of increased bets following a large series of losses.

But as cycles end up on losses, it is no longer possible to make a profit every cycle. The succession of losing cycles over the long term leads to a slow exhaustion of the bankroll. Since the amount lost at each cycle is limited, it corresponds to the total sum of the sequance (initial bet).

The choice of the sequence is very important in a **Reverse Labouchère strategy** and there are two important considerations:

- Avoid large numbers to limit losses
- Use several numbers, at least 6 to guarantee a minimum profit before the cycle disappears

For example, with a Bankroll of $500 and using 10% of the Bankroll ($50) as a starting bet unit limit, these distributions can be good sequences for the **Reverse Labouchère system** (with no guaranteed winnings of course).

**1-2-4-7-11-16**

**1-2-3-4-5-6-7-8**

**1-2-2-4-4-6-6-8-8**

#### GSimulator

The flexibility of the **Reverse Labouchère betting system** lies in the possibilities of infinite combinations by changing the starting sequence and the odds used (in sports betting for example, football, basketball, baseball, hockey, tennis …).

GSimulator makes it possible to launch a simulation of the **Reverse Labouchère betting system** under real conditions with the possibility of changing in real time several parameters such as starting bet, odds other than 2, number of repetitions or even the limit of the bankroll. The simulator also provides the tools needed to analyze results and compare cost differences with other strategies.

Start a free **simulation of the Reverse Labouchère strategy** in the **GSimulator** or consult the documentation for more informations.

#### Other betting systems

Other strategies and betting systems exist and try to limit the losses, or to increase the profit, by making changes to the rules of stakes following the losses (negative progression) or following the wins (positive progression) :

- Classic Martingale

Increase stake after every loss - Great Martingale

Increase stake + unit bet, after every loss - Fibonacci (Whittacker)

Increase and decrease stake based on the Fibonacci sequence - Reverse Martingale (Paroli)

Increase stake after winning until stop limit - d’Alembert

Increase stakes after a loss, descrease after a win - Contra d’Alembert

Increase stakes after a win, descrease after a loss - Labouchère

Remove first and last number in the Labouchere sequence after a win, add the last bet to the sequence after a loss