At the end of this post I'll paste a copy of the system I used last year. The problem with the system is that I had a group of students who were always at the bottom, which they found very discouraging.
The Chess Club Ladder
1. Initial positions on the ladder are determined randomly. New members of the Club are added to the bottom of the ladder.
2. You may challenge anyone who is one, two, three, or four spots above you on the ladder. If you are challenged to a ladder game, and you are not already in a game, and if there are at least 30 minutes available to play, you must play. (A refusal to play is treated as a loss.) Ladder games must be played with a clock.
3. The player making the challenge plays White. The person being challenged plays Black.
4. If the lower-ranked player wins, the lower-ranked player takes the higher-ranked player’s spot on the ladder, and the higher-ranked player moves down one spot.
5. If the higher-ranked player wins, there is no change in the players’ rankings.
6. If the game ends in a draw, the lower-ranked player takes the spot just below the higher-ranked player. Draws by agreement must be approved by a coach.
7. After a ladder game is played, at least one of the players must play a ladder game against someone else before they are allowed to play each other again.
I'm looking for suggestions for how to run a chess "ladder" (basically, a club ranking system, to encourage friendly competition) in the club I teach at my son's elementary school. If you've used a system that you think has worked well, I'd appreciate hearing about it. Thank you.