This system was originally posted by Bhagwan back on 11/12/2001. The rules of the system are as follows:

Rule 1: Look at all pre-post favourites that have finished second or worse in its last start, but finished no more than 2.2 lengths behind the winner.
Rule 2: Back them each-way if paying $3.00 or more.
Rule 3: Do not back them if paying less than $3.00.
Rule 4: Do not back first-up horses.