The Paroli system is a money management betting system as well as a gambling system. It is a positive progression betting system where you increase the bet when you win. It is one up from the Parlay system in that, rather than just leaving the original bet to ‘ride’, the Paroli System involves also adding the original bet stake on top of that.
The Paroli system is quite the opposite to the Martingale system and is designed to take advantage of 'hot streaks' which do actually occur when you play a game like roulette. The goal is to have three winning bets on any even-money payoff wager. One shortfall of this system - you never know when a streak is about to begin, thus over the long term you could stand to lose as much as over 5% of all the money you bet. The Paroli system has the effect of 'pyramiding' your profit. ‘Pyramiding’ is a parlay wager whereby the original wager plus its winnings are played on successive wagers.
You will need to plan a betting procedure whereby you know how far you will let the bet build before you take it down to the initial starting bet and how much to raise after each win. This will also depend on the type of game you are playing and the odds of the bet.
The advantage of this system is that you do not require a large bankroll. It lets the profit run and cuts short the losses.