TerminalExecutionOdds337ToolsContact
    DocsLog in
    1. Home
    2. Guides
    3. Betting strategy that holds up: price, staking, testing and records
    4. Why betting systems do not work: Fibonacci, D'Alembert, Labouchere and Paroli tested

    Why betting systems do not work: Fibonacci, D'Alembert, Labouchere and Paroli tested

    Do betting systems work? Fibonacci, D'Alembert, Labouchere and Paroli run on the same results, why stake order never changes expected value, and red flags.

    By the B337 team. Last updated 7 October 2026.

    The short answer

    • Betting systems that only change stake sizes after wins and losses do not work, because they cannot change any result's chance or the price you are paid.
    • Expected profit = edge x expected total staked, so at $2.00 on a true 47.5% chance every system loses 5c per $1 staked on average, whatever order it stakes in.
    • Counted over all 1,024 ways 10 bets can land, martingale finishes ahead in about 82% of sessions and Paroli in 45%, yet both average exactly -5% of their turnover.
    • Fibonacci, D'Alembert and Labouchere raise stakes after losses at different speeds and Paroli raises them after wins, which changes how results spread, not their average.
    • Only a better price or a better estimate of the chance changes expected value, and a system sold with promises of profit or recovery staking is a red flag.

    On this page

    1. What each system does to your stakes
    2. Why no staking pattern changes expected value
    3. A system run over hypothetical results
    4. What every possible session shows
    5. What can change outcomes: price and selection
    6. Red flags in systems sold online

    No: a betting system that only changes how much you stake after wins and losses does not work. It cannot change the chance of any result or the price you are paid, so over any run of bets expected profit = edge x expected total staked, and a bet with a negative edge stays negative however it is sized.

    With illustrative numbers, at $2.00 on a true 47.5% chance, every system below loses 5c per $1 staked on average. What a system changes is how much money goes through and how often a session ends ahead, which is why each one looks better over a short run than it is.

    What each system does to your stakes

    Every system counts stakes in units, such as $10 a unit, and changes the next stake after each result:

    SystemAfter a lossAfter a winWhat it is trying to do
    MartingaleDouble the stakeBack to one unitRecover every loss plus one unit with one win
    FibonacciOne step up the sequence 1, 1, 2, 3, 5, 8, 13, 21Two steps backRecover losses more slowly than doubling
    D'AlembertAdd one unitTake one unit off, never below oneProfit when wins and losses even out
    LabouchereAdd the lost stake to the end of a line of numbersCross off the first and last numbersFinish the line for a set profit
    ParoliBack to one unitDouble, then back to one after three wins in a rowRide winning streaks while risking little

    The martingale betting system has its own page, with the stake after each loss and the bankroll a long run needs.

    Fibonacci betting

    Each stake in the sequence is the sum of the two before it. After seven straight losses the eighth stake is 21 units and the run is 1 + 1 + 2 + 3 + 5 + 8 + 13 = 33 units down. A win moves two steps back, from 21 to 8, so one win does not clear a long run. Ten losses in a row cost 143 units, $1,430 at $10 a unit.

    D'Alembert betting system

    Stakes rise by one unit after each loss and fall by one after each win. The idea is that wins and losses balance out, but each result is independent of the last, so a run of losses is never owed a run of wins: that belief is the gambler's fallacy. Ten straight losses cost 1 + 2 + 3 + ... + 10 = 55 units.

    Labouchere betting system

    Write a line of numbers, such as 1-2-3 for a 6-unit target. Each stake is the first number plus the last. A win crosses both off; a loss adds the lost stake to the end of the line. When the line is empty, the session is 6 units ahead.

    A win removes two numbers and a loss adds one, so a line can be cleared with fewer wins than losses, which is its appeal. The catch is the stakes: in the worked run below it put 104 units through to win 6.

    Paroli betting system

    The reverse of martingale: one unit after a loss, double after a win, and back to one after three wins in a row. A run can only lose its first unit, and three straight wins at $2.00 make 1 + 2 + 4 = 7 units. At a 47.5% chance that happens 0.475 to the power 3 = 10.7% of the time.

    Why no staking pattern changes expected value

    Each bet's expected profit = stake x edge, where edge = true chance x decimal odds - 1. A system sets each stake from results already in, before the next result is known, and the next result does not depend on the earlier ones. Add the bets up and a whole session obeys one rule:

    expected profit = edge x expected total staked

    At a true 47.5% chance on $2.00 bets, edge = 0.475 x 2.00 - 1 = -0.05. If a system puts $370 through a session on average, it loses 0.05 x $370 = $18.50 on average; one that puts $100 through loses $5. Raising stakes after five losses cannot beat this, because the sixth bet is still a 47.5% chance at $2.00. Four of the five systems raise stakes after losses, which is chasing losses written as a rule.

    Only two things could break the rule: results that depend on earlier results, or stakes chosen after the result is known. Neither happens, which is why, over enough bets, the law of large numbers pulls every system towards the same -5% of turnover.

    A system run over hypothetical results

    Twelve hypothetical results at $2.00, run through each system: loss, loss, win, loss, loss, loss, win, win, loss, win, loss, win. That is 5 wins and 7 losses, and one unit is $10.

    SystemStakes, bet by bet (units)Total stakedProfit
    Level stakes1 on every bet12 units-2 units (-$20)
    Martingale1, 2, 4, 1, 2, 4, 8, 1, 1, 2, 1, 229 units+5 units (+$50)
    Fibonacci1, 1, 2, 1, 1, 2, 3, 1, 1, 1, 1, 116 units0
    D'Alembert1, 2, 3, 2, 3, 4, 5, 4, 3, 4, 3, 438 units+2 units (+$20)
    Labouchere (1-2-3)4, 5, 6, 6, 8, 10, 12, 11, 10, 14, 6, 12104 units+6 units (+$60)
    Paroli1, 1, 1, 2, 1, 1, 1, 2, 4, 1, 2, 118 units-6 units (-$60)

    The working for D'Alembert: its five wins came on stakes of 3, 5, 4, 4 and 4 units, winning 20; its seven losses were 1, 2, 2, 3, 4, 3 and 3 units, losing 18; profit +2 units.

    Four of the six finish level or ahead on a sequence where level stakes lose. That comes from the order of the results, not from the systems: shuffle the same 5 wins and 7 losses and the ranking changes. Labouchere's +6 needed $1,040 staked in 12 bets, and Paroli lost most because its doubled stakes landed on losers.

    Every system here also assumes even money, where a win's profit equals its stake. At an illustrative $1.90 a win's profit is 0.90 of the stake, so each system's target falls short before the margin is counted:

    RunStakes (units)Result at $2.00Result at $1.90
    Labouchere 1-2-3: loss, win, win4, 5, 5+6 units-4 + 4.5 + 4.5 = +5 units
    Fibonacci: loss, loss, win1, 1, 20-1 - 1 + 1.8 = -0.2 units

    In a three-way soccer market a bet on either team also loses on a draw, so a system's stakes move as if that team had lost.

    What every possible session shows

    One sequence proves nothing, so count them all. Ten bets can land 1,024 ways. Weighting each way by its chance at a true 47.5% gives each system's exact averages, at $10 a unit, with Labouchere starting a new 1-2-3 line whenever one clears:

    SystemAverage stakedAverage resultResult per $1 stakedSessions aheadWorst session
    Level stakes$100.00-$5.00-5%31.7%-$100
    Martingale$370.68-$18.53-5%81.9%-$10,230
    Fibonacci$167.86-$8.39-5%55.3%-$1,430
    D'Alembert$229.73-$11.49-5%60.4%-$550
    Labouchere (1-2-3)$573.71-$28.69-5%58.7%-$950
    Paroli$160.67-$8.03-5%44.8%-$100

    Every system's result per dollar staked is -5%, the edge on each bet: for martingale, -$18.53 / $370.68 = -0.050. Martingale finishes ahead in about four sessions in five and still has the second-worst average, because its losing sessions are huge. A system decides how often you finish ahead and how bad the worst session gets. It never decides the average.

    What can change outcomes: price and selection

    Only two things move expected value: the price you take and the true chance of what you back. With illustrative numbers:

    BetTrue chancePriceExpected value per $1: chance x price - 1
    The bet above47.5%$2.00-5.0%
    The same selection at a better price47.5%$2.15+2.1%
    A selection with a higher true chance, at $2.0051%$2.00+2.0%

    A better price for the same bet, found by comparing bookmakers' prices, changes the value of every dollar staked under any staking plan. A better estimate of the chance is the harder route, and it only counts if your estimate is closer to the truth than the market's. Value betting covers both, and the expected value calculator runs the sum.

    Staking still has a job in a betting strategy, just a different one: sizing bets so a bankroll survives losing runs. Staking plans compares the approaches that do that without claiming to create an edge.

    Risk: Betting involves risk. A bet with positive expected value can still lose, and often does, and a true chance is always an estimate. There is no guarantee of profit. See responsible gambling for limits and support.

    Red flags in systems sold online

    Systems are sold as courses, software, spreadsheets and tipping services. Treat any of these as a warning sign:

    • A promise of profit, a "win rate" with no prices beside it, or talk of investing and income.
    • A recovery or progression staking plan as the main selling point.
    • Results shown as screenshots or highlights instead of every bet, with its date and the price taken.
    • A record that starts just after a winning run, or rests on a few dozen bets.
    • Pressure to buy now, a countdown, or a second fee for "the full method".
    • A seller who earns from selling the system rather than using it, or who goes quiet once you have paid.

    Scamwatch, run by the ACCC, warns that sports "investment" schemes, also sold as sports arbitrage, betting, tipping or trading, are just another form of gambling and often outright scams. They usually involve buying prediction software or joining a betting syndicate, sometimes with a tipping subscription. Problems reported to the ACCC include software that was never delivered or did not work, money that vanished from betting accounts with no bets placed, and sellers who could not be contacted (checked October 2026).

    Backtesting betting strategies shows how to check a seller's rule on past prices, bet by bet, instead of trusting their record. Fake tipster red flags covers the tipping side, and sports investment scheme scams the schemes.

    Questions

    Does the Fibonacci betting system work?
    No. It raises stakes after losses more slowly than doubling, but it changes no price or chance, so at a true 47.5% chance on $2.00 bets it loses 5c per $1 staked on average, about $8.39 per 10-bet session at $10 a unit.
    What is the Labouchere betting system?
    A staking plan that writes down a line of numbers such as 1-2-3, stakes the first plus the last, crosses both off after a win and adds the lost stake to the end after a loss. Clearing the line wins its total, but stakes grow quickly: in a 12-bet worked example it staked 104 units to win 6.
    Is there a betting system that works?
    No staking system creates an edge. A selection rule helps only when its bets are priced above fair, through a better price or a better read of the chance than the market's. Testing it on past prices is the first check, and even then there is no guarantee of profit.
    Why do betting systems seem to work?
    Several of them finish most short sessions ahead: martingale did in about four 10-bet sessions in five. The losing sessions are rarer but larger, and they bring every system's average back to the same -5% of turnover.
    Is the D'Alembert system safer than martingale?
    Its stakes climb more gently, one unit at a time, so its worst sessions are smaller. Its average loss per $1 staked is exactly the same, and ten straight losses still cost 55 units.

    Sources

    • Steer clear of sports investment schemes, Scamwatch
    • Sports investment schemes: it's just gambling, Scamwatch

    Related

    • Betting strategy that holds up: price, staking, testing and records
    • The martingale betting system and why doubling up after a loss fails
    • Value betting explained: edge, expected value and why value bets lose
    • Fake tipster red flags and how to spot a tipster scam
    • What a unit in betting is, how to size one and how to read unit records
    • Variance in betting and why a real edge can lose for months
    • Can you make money betting: the margin, the edge and the costs
    • Closing line value: how to measure CLV and what it shows

    Betting involves risk. Bookmakers can restrict or close accounts and void bets, automation can fail, prices move, and a positive expected value (+EV) bet can still lose. Promotions carry each bookmaker's own terms. There is no guarantee of profit. 18+ only. For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au. See responsible gambling for limits and support.

    Products

    • Terminal
    • Execution API
    • Full Automation

    Guides and tools

    • All guides
    • Betting glossary
    • Betting calculators
    • How betting bots work
    • Arbitrage betting
    • Middle betting
    • Matched betting
    • Betting exchanges
    • Odds types explained
    • Horse racing software
    • Money back racing promos
    • Bonus bet converter
    • Terminal pricing
    • Execution pricing
    • How tokens work

    Company

    • About
    • Security
    • Responsible gambling
    • Contact
    • Terms
    • Privacy

    What are you prepared to lose today? Set a deposit limit.

    18+ only. For free and confidential support call 1800 858 858 or visit gamblinghelponline.org.au. Self-exclusion: BetStop (betstop.gov.au).

    B337 is software, not a bookmaker or wagering service provider. Bets are placed in accounts you hold with Australian bookmakers. Bookmaker names are trade marks of their owners; B337 is not affiliated with or endorsed by them. Bookmaker terms may restrict automated betting.

    Bet337 © 2026Join our Discord