It would basically depend on the average price paid and the strike rate as to how aggressive your staking plan should be.
I would imagine they would average about $3.5 suggesting that you may be increasing to quickly at the start.

My personal preference is to go up and down by percentages rather than set figures.
If you are getting divs of 3.5, you probably need your bet to be doubled after 3 losses rather than 2.

On your 10th bet, your outlay is $27, meaning that you must have a winner paying greater than $5 to be in front. Regardless, your next bet will be 1.
I think more thought needs to be put into it.
You need to work out your winning percentage and average dividend before making a staking plan....