Labouchere Betting System: Cancellation System Fully Explained

The Labouchere — also called the cancellation system — uses a custom number sequence to determine stakes. It lets you set a precise profit target, but reaching it depends entirely on your win rate, not the system itself.

How It Works

Write a sequence of numbers that sum to your target profit (e.g. 1-2-3-4-5 = £15 target)
Your stake = first number + last number (1 + 5 = £6)
Win: Cross off both outer numbers. New sequence: 2-3-4. Next stake: 2 + 4 = £6
Loss: Add the lost amount to the end. New sequence: 1-2-3-4-5-6. Next stake: 1 + 6 = £7
Continue until all numbers are crossed off (profit target achieved) or bankroll runs out

Worked Example

Starting sequence: 1-2-3-4-5 (target profit: £15)

Bet	Sequence	Stake	Result	P/L
1	1-2-3-4-5	£6	Win	+£6
2	2-3-4	£6	Loss	£0
3	2-3-4-6	£8	Win	+£8
4	3-4	£7	Win	+£15

Sequence complete. Target profit of £15 achieved.

The Problem with Losing Streaks

Losses extend the sequence, and each extension increases future stakes. After several losses, the sequence can grow dramatically:

Starting: 1-2-3-4-5 After 4 consecutive losses: 1-2-3-4-5-6-7-8-13

The next stake is now £14 (1 + 13), and the sequence requires many more wins to complete. The system can spiral beyond your bankroll during extended losing runs.

Why It Fails

The Labouchere is elegant in design but shares the same mathematical limitation as every progressive system: it cannot change the expected value of your bets. If each bet has negative EV (due to the bookmaker's margin), the Labouchere merely rearranges when you realise your profits and losses.

Over thousands of attempts, the number of incomplete sequences (bankroll exhaustion before completion) produces losses that exactly offset the profits from completed sequences.

Frequently Asked Questions

How does the Labouchere system work?+

Write a sequence of numbers that sums to your target profit (e.g. 1-2-3-4-5 = £15 target). Your stake is the sum of the first and last numbers. If you win, cross off both numbers. If you lose, add the stake to the end. Continue until all numbers are crossed off.

What happens when you complete the sequence?+

When all numbers are crossed off, you have achieved your target profit. In our example (1-2-3-4-5), completing the sequence guarantees £15 profit. However, completing the sequence requires a win rate high enough to offset the losses that extend it.

How does a losing streak affect the Labouchere?+

Each loss adds a number to the sequence, making it longer and increasing future stakes. Three consecutive losses on a 1-2-3-4-5 sequence could extend it to 1-2-3-4-5-6-9-15, with the next stake being £16. Recovery becomes progressively harder.

Is the Labouchere better than Martingale?+

Stakes grow slower than Martingale, and you can customise your sequence for lower variance. However, it shares the same fundamental flaw: no staking system can convert negative EV bets into positive outcomes. The mathematical proof is identical.

Can you modify the Labouchere for safer use?+

The Reverse Labouchere adds numbers after wins and crosses off after losses, riding winning streaks. Some bettors use shorter sequences or smaller base numbers. These modifications reduce variance but cannot change the expected value of the underlying bets.