I think it might just work in groups sorta. i.e. 1st to 3rd dan, 4th to 7th dan, 8th to 10th dan
if you win one, you go 2nd, win another you get 3rd, and if you win a 3rd one, congrats you're 4th get the fuck off of this station.
if you lose you just rotate to the bottom of who goes in which group, i'm gonna go with the assumption that if you lose your first round in the second group you get bumped down to first group again.
edit:...yeah i think that sounds right. i dunno. it might be you have to do a whole 3 wins in a row, rotate, 3 wins in a row again, rotate, 3 wins again, movin on up deal. :/