The Labouchere system changes stakes using a cancellation list. A win removes two entries, or one if only one remains; it does not necessarily cancel two losing bets. Bankroll exhaustion and table limits remain possible.
Long sequences are not an advantage
Too long and too aggressive starting sequences are the issue, which the majority of players using the Labouchere system encounter, an issue which may consume their bankroll rapidly.
If a player chooses a vast starting sequence such as 1-2-3-4-5-2-1 and manages to clear it, he/she will score a net result (gain) of 18 units. However, different scenarios may occur. Let us take a look at the one below:
| Bet Number | Bet Amount | Outcome | Net Result |
|---|---|---|---|
| 1-2-3-4-5-2-1 | 2 | win | 2 |
| 2-3-4-5-2 | 4 | win | 6 |
| 3-4-5 | 8 | loss | -2 |
| 3-4-5-8 | 11 | loss | -13 |
| 3-4-5-8-11 | 14 | win | 1 |
| 4-5-8 | 12 | loss | -11 |
| 4-5-8-12 | 16 | loss | -27 |
| 4-5-8-12-16 | 20 | win | -7 |
After eight spins, four wins and four losses, this example remains behind. Stake amounts and the remaining list matter more than the simple win count.
The starting list sums to a target of 18 units. More wins would be needed to clear the remaining entries; further losses would extend the list instead.
A shorter starting list needs fewer wins to clear if no losses intervene. It does not guarantee faster completion in actual play or a lower total loss.
For comparison, a two-number list such as 2-3 needs one five-unit winner to clear initially. A list of 1-2-3-4 starts with the same stake but has a different target. Neither creates a positive expected return.
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A sequence can be abandoned at any time. In hindsight, stopping after the third win here would have preserved one unit, but the later outcomes were unknowable then. Choose limits beforehand rather than trying to find a perfect stopping point.
Modifying the Labouchere System
One modification starts recording a list only after the first loss. Here, the first stake is five units. A win ends that attempt with five units profit; a loss creates a list containing 5.
In case the bet loses, then the first number in the new sequence will be 5 and the next bet will be 5 units. In case the second bet loses, then the sequence will be extended to 5-5 and the third bet will be 10 units. Let us look at the scenario below:
| Bet Number | Bet Amount | Outcome | Net Result |
|---|---|---|---|
| none | 5 | loss | -5 |
| 5 | 5 | loss | -10 |
| 5-5 | 10 | loss | -20 |
| 5-5-10 | 15 | loss | -35 |
| 5-5-10-15 | 20 | win | -15 |
| 5-10 | 15 | win | 0 |
| sequence cleared |
In this selected sequence, two wins recover four losses and leave the player at break-even. The next illustration adds an extra unit to each recovery bet, creating a small profit if this particular sequence completes, while increasing exposure.
| Bet Number | Bet Amount | Outcome | Net Result |
|---|---|---|---|
| none | 5 | loss | -5 |
| 5 | 6 | loss | -11 |
| 5-6 | 12 | loss | -23 |
| 5-6-12 | 18 | loss | -41 |
| 5-6-12-18 | 24 | win | -17 |
| 6-12 | 19 | win | 2 |
| sequence cleared |
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Again two wins were sufficient to cancel four losses and to clear the sequence. As can be observed, the bets increased in size, but, in the end, the net result turned out to be a gain of 2 units, or on average 1 unit per winning bet. In case the player added 2 additional units, he/she would have scored a net gain of 4 units.
These sequences illustrate possible outcomes, not reliable performance. Neither this modification nor a favourable win-to-loss count guarantees profit before funds run out.
Caution!
Every modified Labouchere system player should be aware of another hazard; a situation where there have been a few short strings of losses separated by single wins.
Similar to the traditional system, if the sequence becomes quite long or the bets become quite large in size, a player should look for a suitable moment to abandon the sequence.
Waiting for an even-money bet to lose once or twice does not improve the next spin’s probability. Past outcomes cannot make a recovery due in a fair, independent game.
Further reading: Gambling Commission standards for random outcomes.
