Comparison with Martingale System
When we talk about Labouchere strategy and compare it with the Martingale System, it is fair to establish that the former is far more complex than the later but at the same time it is also safe. It is a notable fact that when using Martingale system, you could lose a lot of money if things go against you contrary to Labouchere strategy. Another thing about this Labouchere strategy that the pace of this system is quite slow but at the same time is consistent as well. This method is also commonly known and recognized as cancellation technique since it entails the crossing of numbers.
The strategy
You begin by jotting down number sequence which will affect your bets. You could just begin by writing down a sequence like only 1’s.
The left and right side of number sequence will be crossed if you win your first bet which will be the sum of these two numbers. This Labouchere strategy seems straightforward when you win but it becomes complex when you lose and then you have to pay more attention. So, if you lose, no crossing of the numbers would be done. The number sequence now contains a two at the right side and this is when you have lost your first bet. In case you lose this bet as well, the sequence now contains three at the right side as well. So, the amount of bet you will place next is dependent on the sum of right and left side numbers. If you are losing your bets in a row the numbers which are the sum will keep on adding in Labouchere strategy.
In short, the betting amount in Labouchere strategy is always determined by the addition of right and left hand numbers of the sequence. Moreover, the players are strongly advised to cross numbers when they even when using this Labouchere strategy, on the opposite if they use Paroli strategy everything is vice versa. Once you have lost, the numbers will not be crossed and the betting amount will be determined by the basic rule i.e. by adding left and right hand numbers in the sequence. When you are using Labouchere strategy, you could start with any number sequence consisting of small and large numbers. However, the better idea would be to start with the safe amount to minimize losses. The number sequence should be used only to determine the amount of bet. If you use it safely and without going too big, it is one of the safest strategies you could go for. Stop loss limit could play an important role for you in this strategy.