The Fibonacci betting system is a negative progression strategy that helps you chase down losses while playing online casino games.

It is named after a famous Italian mathematician from the Middle Ages, who created the eponymous Fibonacci sequence. Traders in stocks and crypto often talk about **Fibonacci retracements and ratios, **but the sequence is **also used by many gamblers**.

## How Does the Fibonacci Betting System Work?

The Fibonacci sequence might initially appear complex when you see it written down, but it is actually very simple. **Each number is the sum of the previous two numbers**: 1-1-2-3-5-8-13-21-34-55-89-144 and so on.

Bettors use this sequence to determine how much they should wager on each bet.

It is designed for bets where the **chances of success are roughly 50/50**, such as red/black on a roulette game, a blackjack or baccarat hand, or bets like pass/donâ€™t pass on a craps table.

You start out by **deciding upon a unit price**. It is generally a portion of your bankroll, such as $20. This unit price corresponds to the numbers on the sequence.

**If it is 1, you bet $20. If it is 8, you bet $160**.

You start off by betting one unit. If you win, you remain at the start of the sequence. **You only move forward after a loss**. If you lose a bet, you move along the sequence, betting one unit, then two units, then three units, then five units, and so on.

**Each time you win, you move two steps back**. Each time you lose, move one step forward. The idea is that you will eventually wipe out any previous losses that you have suffered.

## Fibonacci Betting System Example

Letâ€™s say your unit price is $10. You start out by betting $10 on red on a roulette wheel and it loses. You then move up one place in the sequence. That still requires you to bet one unit again ($10), and **you lose again, meaning you are down $20**.

You then move to the next number and bet $20. If that loses your next bet will be for $30. If you lose again, you are down $70 overall. For your fifth bet, you will need to wager $50.

If that bet wins you cut your losses to just $20. You then go back two steps and bet $20. If that bet wins, **you break even, despite winning just two out of six bets**.

## Fibonacci Betting System Pros and Cons

**It allows you to grind out lots of small profits,** and you can then chase down any losses you might incur in an increasingly aggressive fashion as you move up the sequence.

However, it is rare to go up to the higher numbers, as that would require you to embark on a prolonged losing streak, so the Fibonacci system generally **keeps you at the table for a long time**.

However, there are some downsides. If you end up going **through a losing stream, the stakes can be high**.

If, for example, you happen to lose 10 bets in a row, and your unit price is $10, your 11th bet would be for $89.

That would be highly unusual when betting on roughly 50/50 options, but it is worth considering, as you can **blow your bankroll or run up against table limits**.

## Fibonacci Betting System Alternatives

The Fibonacci betting system does not capitalize upon winning streaks. If you want a positive progression system that doubles down on winning bets, youi can try the Reverse Martingale, the Paroli or Oscarâ€™s Grind.

The Fibonacci system is a reasonably complex negative progression strategy, especially if you do not have the sequence written down in front of you.

If you want something simpler, you can try the Martingale or the Dâ€™Alembert betting system.