I would only add to that, to provide twice the amount that you are actually prepared to lose, so in the example given use a theroetical bank of $2000, but if ever you are showing an accumalated loss of $1000 + any winnings to date on any given sequence (i.e.since last % increase) stop, and either start again with another bank or look for another selection method.
The reason I say this is because you will most definitly hit a horror run at sometime with heaps of inexplicable 2nds etc etc. so it's a mental thing to know that your bank will not be wiped out in total, you will have the chance within your own rules to stop and regroup. (been there, done that, and survived)