The 1% outlay with the first bet is the to work out ones betting bank needed.

Example .
Say the lowest divisor that one wishes to use is 6/1
Say ones starting target is $60 / 6 = $10 (first bet) = 1% of bank

Therefore bank would have to be $1000

The plan is straight forward but it is very confusing on the site that has the plan.

So I shall try to keep it simple as possible.

Target $60
Starting divisor 6/1
First bet $10 = 1% of bank, so bank should be $1000.
Bank $1000

The divisor is increased by 1 Pt after each loser.
The divisor is reduced by its Fractional odds after each winner as per originator or one can reduce the divisor by its Decimal odds , which makes it a bit more aggressive & recovers quicker.
e.g. Reduce by 5pts for $5 div rather that 4pts as for 4/1 .

Example of divisors used & reduceing using Fractional odds
6 7 8 9 10 11 12w3/1 9 10 11w4/1 7 8w3/1 6w 6w 6w 6 7 ect.
Never dropping below 6/1

The idea is to restart at $60 again, as soon as any profit is made.
e.g. $2+

Ones selection plan has to break nearly even, to make it work using Fractional odds.e.g. 4/1 div. to reduce the divisor

Ones selection plan can afford to have a minus 10-15% LOT at level stakes if using Deciaml odds e.g.$5.00 div. to reduce the divisor.
This is the one I would use.

I hope this makes it a little clearer.

Cheers.

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Cheers.