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This system is similar to the Paroli system and has the effect of 'pyramiding' your profit. Pyramiding is a parlay wager whereby the original wager plus its winnings are played on successive wagers.

It is commonly used in horse racing betting. Basically you make a bet and if you win you re-invest the winnings on the next bet. You 'let it ride'.

This method of play is by no means risk free, but it offers the least amount of risk of all wagers since the player is only concerned with either a win, place or show selection or a combination of the three.

It is one of the oldest methods of wagering and was originally derived from the same premise that banking systems use to compound interest.