How Hard Can It Be? 
Say you make £100 in month 1 of trading. Aim to double this amount in month 2. How is that even possible?
For example, you sell a put priced at 10=£100, and you needed for the sake of simplicity, margin of £1,000. Next month you need to double your margin amount to £2,000. You are unlikely to start from only £1,000, but it could be done with a spreadbet account. Last time I looked there was a standard margin requirement of £500 to sell OTM puts. First of all, let’s spice things up and say you have an account of £5,000, so you can trade 10 of those puts, and pull in £1,000. Therefore,next month you have £6,000 in margin, so you can pull in £1,200. How long to get to a million? What if you trade strangles and take in 10 per side? Hence that’s £200 per strangle and margin should remain the same.(It may not with a spreadbet account).We are not doubling the credit each month but doing nicely.
Crunching the Numbers
Let’s go again with £5,000 margin and 10 contracts of a 20 premium strangle.
Month 2: you now have £7,000 in margin= 14 contracts.
Month 3: £9,800= 19 contracts.
Month 4: £13,600 in margin= 27 contracts.
Month 5:£19,000 in margin=38 contracts.
Month 6: £26,600 in margin= 53 contracts.
Pretty soon you have £100k(my arithmetic may vary from actuality!)
I Could Go On……
Can we, in addition, backtest this? Well, yes and also no is the answer. IF it was this simple we would all be in the queue. There will be trades that fail. BUT…..You can control that fail, in part with limit orders. In March, for example, you’d have been short the 7400 call-and FTSE had 3 days above 7400. What could you have done? Closed out/rolled up/rolled out, moved puts up? That is why the smart money wins,coping, when things go wrong. The dumb money gets hoovered up.
I was told it takes 16 doubles to get to that million from £100-doesn’t SOUND like a tall order….
Really?? 16 doubles is less than two years! Exciting information. We can certainly backtest and i am sure if we are just aiming for 10 points, it would be something like less than 10 delta.. Awesome trade with more than 90% win probability.