I will try to explain one version of Reverse Labouchere with stop loss. MY version, based on the Bar principle explained in the main article.
Let's say we start with the sequence 1,2,3,4.
We put a bar in the middle:1,2 | 3,4
We bet the sum of the 2 left numbers of the two parts. We bet 2+4=6
If we win we add the win to the right end of the right part:1,2 | 3,4,6
We bet the sum of the 2 left numbers of the two parts. We bet 2+6=8
If we win we add the win to the right end of the right part:1,2 | 3,4,6,8
We bet the sum of the 2 left numbers of the two parts. We bet 2+8=10
If we win we add the win to the right end of the right part:1,2 | 3,4,6,8,10
Now, we move the Bar one step to the right! We do that every third consecutive win!1,2, 3 | 4,6,8,10
And we bet 3+10=13
If we win the line becomes 1,2, 3 | 4,6,8,10,13
Next bet: 3+13=16
You need to understand that:
When any of the two parts get written off the attack ends. This means for example that from this point 1,2, 3 | 4,6,8,10
after 3 consecutive losses we will reach this point: - | 4
Here we end the attck. We take 4 units, but we have initially invested 1+2+3+4=10 units, so we end the attack with -6 units. This may seem absurd but it isn't. First you must understand that in reverse Labouchere the norm is that you lose your attack most of the time anyway. Without the stop loss bar, every lost session would have cost you 10 units, but thanks to the Bar we lost only 6 units in this lost attack. Secondly the benefits of the Bar are more prominent after having a great start with many wins and then facing losses. In such a case the traditional reverse Labouchere would wipe out all your units to a loss of 10 units. In the stop loss Bar version you can end the same attack with PROFIT. This is because the two parts of your sequence would not be equal in lenght.
Let's say you have a great start in your attack and you have reached this point:1,2,3,4| 6,8,10,13,16,19
In this case if we face 4 consecitive losses our sequence becomes - | 6,8,
and we end the attack with 14 units. 14- our initial 10 units = 4 units profit.
In original reverse Labouchere you either win really BIG (very rarely) or you lose the sum of your starting sequence (very often). The stopp loss bar version gives you the opportunity to finish an attack with some units, even if you have not reached the BIG win. This does not mean that the original Rev Labby is a worse progression. It is just more aggressive; it is an all or nothing system.