Hi!
In fact, if we apply this formula immediately after the first loss, which if it was 2 units, then the required odds for the first recovery attempt would be (2+1)*1.03/9.4 {where 2 was the first loss , 1 is the minimum win to be maintained, and 9.4 is the back odds minus 1} which would come out to be 0.3287 unit to stake but since this would be not accepted by Betfair (unless of course xfeeder could be programmed to bet below minimum stake).
the odds 10.4 would keep the recovery stakes at 2 for the next 8 attempts after which the loss would not be recovered by flat betting.
Below is a simple calculation of stakes upto level 36 :
Attempts Odds Stake Loss Win:
1   10.4   2   2   18.42
2   10.4   2   4   18.42
3   10.4   2   6   18.42
4   10.4   2   8   18.42
5   10.4   2   10   18.42
6   10.4   2   12   18.42
7   10.4   2   14   18.42
8   10.4   2   16   18.42
9   10.4   3   19   27.64
10   10.4   3   22   27.64
11   10.4   3   25   27.64
12   10.4   4   29   36.85
13   10.4   4   33   36.85
14   10.4   5   38   46.06
15   10.4   5   43   46.06
16   10.4   6   49   55.27
17   10.4   7   56   64.48
18   10.4   8   64   73.70
19   10.4   9   73   82.91
20   10.4   10   83   92.12
21   10.4   11   94   101.33
22   10.4   12   106   110.54
23   10.4   14   120   128.97
24   10.4   15   135   138.18
25   10.4   17   152   156.60
26   10.4   19   171   175.03
27   10.4   22   193   202.66
28   10.4   24   217   221.09
29   10.4   27   244   248.72
30   10.4   30   274   276.36
31   10.4   34   308   313.21
32   10.4   38   346   350.06
33   10.4   43   389   396.12
34   10.4   48   437   442.18
35   10.4   54   491   497.45
36   10.4   60   551   552.72
This is not based on any formula but simply some estimate to stay ahead of loss.
Now if we were able to bet below minimum and apply the formula, then the chart would go like this
Attempts   Odds   Stake   Loss   Win:
1   10.4    0.10     0.10    0.92
2   10.4    0.12     0.22    1.10
3   10.4    0.13     0.35    1.23
4   10.4    0.15     0.50    1.37
5   10.4    0.16     0.67    1.52
6   10.4    0.18     0.85    1.68
7   10.4    0.20     1.05    1.87
8   10.4    0.22     1.28    2.07
9   10.4    0.25     1.52    2.30
10   10.4    0.28     1.80    2.55
11   10.4    0.31     2.11    2.83
12   10.4    0.34     2.45    3.14
13   10.4    0.38     2.83    3.48
14   10.4    0.42     3.25    3.86
15   10.4    0.47     3.71    4.29
16   10.4    0.52     4.23    4.76
17   10.4    0.57     4.80    5.28
18   10.4    0.64     5.44    5.86
19   10.4    0.71     6.14    6.50
20   10.4    0.78     6.92    7.21
21   10.4    0.87     7.79    8.00
22   10.4    0.96     8.76    8.88
23   10.4    1.07     9.82    9.85
24   10.4    1.19     11.01    10.93
25   10.4    1.32     12.33    12.12
26   10.4    1.46     13.79    13.45
27   10.4    1.62     15.41    14.93
28   10.4    1.80     17.21    16.56
29   10.4    1.99     19.20    18.38
30   10.4    2.21     21.41    20.39
31   10.4    2.46     23.87    22.62
32   10.4    2.73     26.59    25.10
33   10.4    3.02     29.62    27.85
34   10.4    3.35     32.97    30.91
35   10.4    3.72     36.70    34.29
36   10.4    4.13     40.83    38.05
37   10.4    4.58     45.41    42.22
38   10.4    5.09     50.49    46.85
39   10.4    5.64     56.14    51.98
40   10.4    6.26     62.40    57.67
41   10.4    6.95     69.35    63.99
42   10.4    7.71     77.05    71.01
43   10.4    8.55     85.61    78.79
44   10.4    9.49     95.10    87.42
45   10.4    10.53     105.63    97.00
46   10.4    11.68     117.31    107.63
47   10.4    12.96     130.27    119.42
48   10.4    14.38     144.66    132.51
49   10.4    15.96     160.62    147.03
50   10.4    17.71     178.33    163.14
51   10.4    19.65     197.98    181.01
52   10.4    21.80     219.78    200.85
With this, we can go out for 52 straight attempts with a bank of 220 units
Please note that the 3% allowance for betfair commission (which in reality is 2%) allows for a still further gain in long drawn out cases as in the 52nd case, if we win, we make a gain of 200.85 minus 197.98 which is bigger than the minimum of 1 unit win which we targeted.
Regards