The 1-3-2-4 betting system in Baccarat is a positive progression strategy that increases bet sizes after wins and resets to the base bet after losses, aiming to balance risk and reward. The sequence starts with 1 unit, followed by 3, 2, and 4 units if all bets win, and restarts at 1 unit after a loss. This system capitalizes on winning streaks while minimizing losses, but doesn't alter the fundamental odds or guarantee long-term profit due to the house edge.