How the Reverse Labouchere Strategy Works on Deriv
Reverse Labouchere flips the Cancellation system: wins add to the list and raise your stakes, losses cross numbers off.
How Reverse Labouchere works
You use a list such as 1, 2, 3 and stake the first number plus the last. After a win, the winning stake is added to the end of the list. After a loss, the first and last numbers are removed.
That pushes stakes up during winning streaks and down quickly after losses. When the list is empty, a new cycle begins.
The rules
- Start with the list 1, 2, 3.
- Stake = first number + last number.
- Win: add the stake to the end of the list.
- Loss: cross off both ends.
- Empty list: start a new cycle.
A worked example
| Trade | Result | Stake (USD) | List after trade |
|---|---|---|---|
| Trade 1 | Win | 40.00 | [1, 2, 3, 4] |
| Trade 2 | Win | 50.00 | [1, 2, 3, 4, 5] |
| Trade 3 | Loss | 60.00 | [2, 3, 4] |
| Trade 4 | Loss | 60.00 | [3] |
| Trade 5 | Win | 30.00 | [3, 3] |
| Trade 6 | Loss | 60.00 | [1, 2, 3] |
Reverse Labouchere starting from the list 1, 2, 3 (10 USD unit). The list is shown after each trade. An empty list restarts at 1, 2, 3.
Risks to understand
Winning streaks end
Stakes are largest at the end of a streak, so the first loss can be costly.
Lists grow after wins
Check where the list stands before you leave a bot running.
No edge
The list changes stake sizes, not the odds.
Using Reverse Labouchere in AI Binary Bots
Choose it from the Progression Strategies dropdown in the Trading Panel, then turn on risk management to add a stop loss and take profit. Practice on a Deriv demo account first and review drawdown and largest loss in Trade analytics. No staking plan creates an edge: progressions only reshape how much you stake, not whether a trade wins.
Test Reverse Labouchere on a Deriv demo account before you risk real money.
Get StartedFrequently asked questions
- How does Reverse Labouchere differ from Labouchere?
- Labouchere adds to the list after a loss. Reverse Labouchere adds after a win and crosses numbers off after a loss.
- What happens when the list is empty?
- The cycle ends and a new list is started.
Keep reading
- Labouchere (Cancellation)Labouchere, also called the Cancellation system, sets each stake from a list of numbers. Wins cross numbers off, losses add one.
- ParoliParoli is a reverse Martingale: it doubles your stake after a win and drops back to the base stake after a loss.
- All strategy guidesCompare every staking strategy in one place.
Risk warning: Trading binary options involves a high level of risk and you could lose your entire stake. Only trade with money you can afford to lose. This page is educational and is not financial advice.