It's a strategy that can work for people who have a lot of emotional control.
This gambling pattern is certainly quite frustrating for most people and I doubt that many of them can maintain consistency in these bets after a few dozen losing bets.
Most gamblers need a win every now and then to keep them motivated and "renew their faith" that they can win, even if it's just a little bit.

I've made a few bets like this and lost almost $100 in less than two hours, it was quite frustrating and I probably wouldn't do it again.
For me, gambling needs to be enjoyable first, whether it pays or not... that's just a consequence.