How do you organize a ladder tournament?

Answer 1

Ideally you place the strongest players at the bottom of the ladder, and the weakest at the top. A player may only challenge a few "rungs" above their position ie. the 5th ranked player can only challenge players 4,3,2. Additionally a player can be challenged by anyone within 3 rungs bellow them. If a lower ranked player beats a higher ranked player they switch rankings. If the upper ranked player wins they maintain their position.