Labouchere (Cancellation) system:

The Labouchere (sometimes called the Labby or cancellation system) is quite different than the other popular progression schemes. To begin, start with a list of numbers... any order, amount or size:

1 3 2 5

The amount you bet is always the sum of the two outermost numbers. In this example the first bet would be $6. If the bet is won, the one and five are crossed out and the next bet is 3 + 2 = $5. If this bet is also won, then the series is completed and a new one can be started.

Whenever a bet is lost, the bet amount is added to the end of the list. For example if the first bet of $6 was lost the series would become:

1 3 2 5 6

The second bet in this case would be 1 + 6 = $7. The great thing about this system is that you are crossing out two members of the series for each win, but you're only adding one for a loss. With equal wins and losses you can complete the series. Even the series W L W L W L etc. will eventually win. W L L W L L etc. will cause the number of terms in the series to stay the same, although this will eventually lose because the last term will grow larger and larger.

Reverse Labby:

As with most other progression schemes, by reversing the rules you can convert this to a positive (up as you win) progression as opposed to a negative (up as you lose). The reverse Labby says to cross out for a loss and add a term for each win. You'll need many wins for this system to work though because as with the regular labby, even equal wins and losses will end the series quite quickly. Also remember a stop point must be set for you to take profits.