Very Interesting theory here, instead of loss chasing, you are capitalising on the event of say three winners in a row. The likelihood of this would be a very slim percentage. Not to say that it doesn't happen, because it does, but I don't know if you could wait the very long run of outs before showing a profit.
I would much rather this scenario place betting, but then the returns will not be as good. It balances itself out though because you would not endure that horrid run of outs.
I.E. More regularly there are days where 4 to 6 favourites are placed.
It is worth persuing because if you can handle the bad times I am sure the dividends would more than compensate.

I.E. $10 on $2.60 + $2.80 +$3.20 = $232.96
So it makes up for 23 losses @ $10.00

I would imagine, as mentioned, you need a very sizeable bank!

One flaw I forgot to mention - If you are in a run of say 50 consecutive outs (a reasonable expectation) how are you going to feel when you place an all-up on what you think is the favourite and there is a last minute plunge on something at 5/1 into 7/2 favourite and it salutes, and you miss it!
Better to take prepost or have some other method of selection. This is one of the problems with favourite systems etc.
You can miss it when you most need it. Just a suggestion.

[ This Message was edited by: Equine Investor on 2002-06-28 00:11 ]