Fibonacci sequences are present across the natural world. Flower petals, seed heads, even hurricanes follow this golden ratio. Named after the Italian mathematician who defined it, there are a number of real-life use cases. But the reason we’re interested in the fibonacci sequence, is its application in betting strategy. Before we dive into a fibonacci betting system, let's take a look at the sequence.
Discovered and defined by the Italian mathematician of the same name, the simplicity of the fibonacci sequence goes some way to explaining its prevalence. This is the formula:
N3 = N1+N2
So written out the sequence looks like: 0, 1, 1, 2, 3, 5, 8, 13… Starting with 0 and 1, the next number is found by adding the previous two together.
In gambling, a Fibonacci system is a progressive system. Specifically, it's a negative progression system that requires you to increase your stake every time you lose a bet. It uses the Fibonacci system to work out how large your stake should be for each bet. It can be applied to casino or sports betting. There are numerous ways to apply it so we’ll cover off some of the basics.
Fibonacci Casino Betting
Fibonacci betting is usually applied to even money bets in roulette or blackjack. Before placing your bet, you need to decide how much each unit of stake will be. Ignoring the first two digits of the sequence, your first bet is one stake. Then if you lose, you move one step along the sequence. So your next bet would be two units. This rule applies to every loss.
After a win, you move two numbers down the sequence. So if you win after placing a 13 unit stake, your next bet would be 5 units.
Losses can quickly mount up with this system as it relies on a big win to cover previous stakes.
Fibonacci Sports Betting
Just like casino betting, it’s important to place bets when odds are at least evens (displayed as 2.0) when using the fibonacci system in sportsbook markets. You might choose to always bet on draws or back a specific team. Whichever market you choose, it’s important to keep to the sequence. And of course to set a realistic first stake. Let's take a look at Manchester City's results in the 2017/18 English Premier League season if we were to bet on draws:
Starting with 1mBTC in the first game, they drew in their second game. Therefore we could expect a small profit from our 2mBTC bet. As we won, we move back. As it's so early it's down to our original stake. Then Manchester City went on an astonishing run of 19 victories until their draw with Crystal Palace. Following the fibonacci system, we'd have lost 10.994 bitcoin at this point. And our stake on this match will be 6.765 BTC.
Assuming the odds were at least evens, we could expect a return of 13.53 BTC. So with one winning bet we have turned all the losses around into profit of 2.586 BTC. Not a bad return but the amount of proportional investment is huge. Would you be able to hang on for that result?
The question to ask yourself is: Do I have the necessary bankroll for the fibonacci system.
When You Should Use It
Using a fibonacci system requires patience and the potential bankroll to cover large losses. Just like any negative progression system. You need to have the patience and discipline to take a long term view of profits as you’re likely to make some big losses before your first big win. But if you’re not sure that it’s the right system for you, take a look at our other articles on betting strategy.