The Stock Butler

For a smaller portfolio size, say less than $5,000 up to $10,000, you should plan on allocating 50% of your portfolio amount (in cash) to trading Hot Hands (ETFs) and the remaining 50% for Seasonal ETFs.

So small accounts should probably start with a maximum of 5 ETFs so that commissions don't eat into their profits, and as their portfolio grows towards $5K, they can use $2.5K (50% of their portfolio amount) and start adding ETFs until they are using up to 10 Hot Hands picks each month.

For those who are concerned about not having enough to buy more than 1 share of an ETF, Courtney Smith suggests that one could lower the number of ETFs and buy more shares per ETF while staying in the 1% range for Hot Hands. One can use 5 ETFs which would give $200 per ETF with a $10,000 account and as your account size grows perhaps then consider raising the number of ETFs. Don't go below 5 so you can keep some amount of diversification with your ETF picks.

The process for finding Hot Hands is on the FTI/SSS website or here in The Stock Butler. 

For a portfolio of $10,000 and up, you would allocate 10% of your portfolio amount (in cash) for Seasonal, 10% (in cash) for all Hot Hands trades and the remaining 80% for stocks, e.g. Best of the Best stocks, Pitbulls, etc.

For example, with a $10,000 portfolio, you should take a $1,000 position size of IWM (or DXD) and all your Hot Hands trades of the month should be a $1,000 position size (in total) so about $100 per ETF. The rest of your portfolio could be use for buy Best of the Best stocks.