The Score Betting System is a wagering strategy commonly used in sports betting. This system is designed to help bettors manage their stakes in a structured manner, often with the aim of maximizing potential profits while minimizing risks. Here are the key elements of the Score Betting System:
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Initial Stake: The bettor decides on an initial stake, which will be the basis for all subsequent bets in the system.
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Progression: The system follows a progression of stakes based on the outcomes of previous bets. There are different types of progressions, such as positive (increasing the stake after a win) and negative (increasing the stake after a loss).
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Targets: Bettors set specific profit targets or goals they aim to achieve through the progression.
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Unit System: The bettor divides their bankroll into units, and the stake for each bet is expressed in units. This helps in managing the size of the bets relative to the overall bankroll.
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Fixed Rules: The system follows a set of predefined rules regarding stake size, bet type, and progression. This reduces emotional decision-making and introduces a level of discipline.
Common Types of Score Betting Systems
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Martingale System: A negative progression system where the bettor doubles their stake after each loss, aiming to recover all previous losses and make a profit equal to the original stake when they eventually win.
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Fibonacci System: A negative progression system based on the Fibonacci sequence, where the stake is the sum of the previous two stakes after a loss.
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D'Alembert System: A system where the bettor increases their stake by one unit after a loss and decreases it by one unit after a win.
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Labouchere System: Also known as the cancellation system, where the bettor sets a sequence of numbers representing their stakes and crosses out numbers after wins and adds to the sequence after losses.
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Paroli System: A positive progression system where the bettor doubles their stake after each win, aiming to capitalize on winning streaks.
I will discuss the most popular method which I use
Labouchere System
Labouchere System, also known as the cancellation system, can be applied to trading. This system involves setting a specific profit goal and then breaking that goal down into smaller amounts. Traders cancel out numbers after achieving profits and add them back after losses. Here's how you can apply the Labouchere System to trading, along with an example:
Steps to Apply the Labouchere System in Trading
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Set a Profit Goal: Decide on a total profit goal. For instance, let's say you want to make $100.
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Divide the Profit Goal: Break down this goal into smaller, manageable units. For example, you could break it into the sequence: 10, 20, 30, 20, 20.
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Determine Trade Size: The sum of the first and last numbers in your sequence will determine the size of your first trade. In this case, it would be $10 + $20 = $30.
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Place the Trade: Execute the trade with the determined trade size.
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Outcome of the Trade:
- Win: If the trade is profitable, cross out the first and last numbers of the sequence. Your new sequence would be 20, 30, 20.
- Loss: If the trade is not profitable, add the trade size to the end of the sequence. Your new sequence would be 10, 20, 30, 20, 20, 30.
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Repeat: Continue placing trades based on the sum of the first and last numbers of the updated sequence. Keep repeating until all numbers are crossed out, which means you've achieved your profit goal.
Example
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Initial Sequence: 10, 20, 30, 20, 20
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First Trade Size: $10 + $20 = $30
- Outcome: Win
- New Sequence: 20, 30, 20
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Second Trade Size: $20 + $20 = $40
- Outcome: Loss
- New Sequence: 20, 30, 20, 40
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Third Trade Size: $20 + $40 = $60
- Outcome: Win
- New Sequence: 30, 20
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Fourth Trade Size: $30 + $20 = $50
- Outcome: Win
- New Sequence: (All numbers crossed out)
In this example, you reached your profit goal after four trades.
Conclusion
The Labouchere System can be adapted for trading to manage profit targets and risk. While it provides a structured approach, it requires discipline and effective risk management to be successful. Always backtest the system in a demo account before applying it in live trading to ensure it fits your trading style and risk tolerance.
