If you win the wager, the cycle ends, and you can start over again with the original sequence or create a new sequence. However, if you win the first time and two remain in the sequence, you stake that number.
Hence, in the next bet, you would stake 1 + 4 ($5). You stake a combined amount of the last and first numbers for each subsequent wager. After the initial bet, the process repeats itself until you clear the numbers on the sequence. Hence, your new sequence will be 1,2,3,4.
If you lose the wager, you add the amount staked to the end of the sequence.