In the classic Martingale betting system, each player increases their bet after each round that they lose so that they can recover all their losses when they win. But in the Reverse Martingale System, you have to bet on the streak continuously. In other words, you double your bet for every successive win and you reduce your bet to one unit on the next spin on every loss.
This system teaches players to double their bets after every win and reduce bets each time they lose, which is the the complete opposite of the Martingale System. The idea is that this will benefit a gambler from a winning streak, and at the same time reducing the losses during a losing streak.
Take this instance; you might bet $1 on black if you were using the Reverse Martingale at the roulette table. And if the black wins, you increase your stake to $2, which is double your initial bet. And if the black wins again, you increase your stake to $4 and you continue to do this while you are on a winning streak. When you do this, you have to decide when to stop as this is an issue of personal strategy.
As the probability of a long streak is rather small, it is rather difficult for a gambler to win on a single streak while utlizing the Reverse Martingale System. Therefore, be prepared to stay and play for several more streaks that you run into. The Reverse Martingale System is truly one of the best strategies for anyone on the rush.
If you limit yourself to short streaks of 3 or 4, the effectiveness of the Reverse Martingale can be rather high since the vast majority of streaks will never be longer than 4. This can be considered pretty profitable if a gambler knows when to stop. But whether a gambler uses the Martingale or Reverse Martingale would all boil down to the gamblers playing style and preferences.
The Reverse Martingale can be utilized in other aspects of life. When one is trading in stocks, the Reverse Martingale can prove very effective as well. Since the financial market is quite huge, adaptable traders will apply different strategies depending on the market mood and the fundamental changes in the market.
The Reverse Martingale System may be put into use to significantly augment profits when the strategy is doing well and it will automatically reduce losses when the strategy is somehow not doing very well.