Hi Rav,
AFFcelerator student here too. Took the course in October 2015 in London 
For cutting site IDs, since there are so many, most people use just an approximation and have a few steps at cutting.. For example:
1. 3x payout and -100% ROI
2. 6x payout and <-50% ROI
3. 10x payout and <0% ROI.
You can go through more steps if you want, maybe cut more aggressive, maybe less aggressive. This is just a small example. Cutting the -100% ROI sites has a bigger impact than the -10% usually, unless the -10% ROI website is just huge.
One important thing, in my opinion is to not cut site IDs before you have found your best lander + offer.
0.009 is $9CPM, yes.
More optimization techniques? Well, PopCash is not so great with targeting but on PopAds for example you can cut browsers, OS versions, device models, ISPs and quite a bit more. You can optimize all those, if you can target them.
Your testing budget should be enough, yes. If you have a big enough budget behind your campaigns, you could try and test more than one thing at once, as long as you know what you are doing, as long as you understand what you are testing and why.
Start with blacklisting. Whitelisting is most often a last resort before calling a campaign dead and buried.
Looking forward to seeing your progress!
1. You are probably experiencing some click loss because it is pop traffic, so your ROI is probably worse
2. You want to be able to spend $xxx a day and be profitable. You need to make money at this, otherwise, what is the point. Make sure you dont run out of traffic by pausing every target. The goal is to get stuff working with out having to pause much. Solutions? better offer, better LP, maybe different geo, or different traffic source..
3. You need to find a super solid offer. Ask your AM what's hot, what are some hot offers. Use a spy tool likes Adsxposed. Use similarweb. Change your browser to be a mobile browser profile and plug in an IP for the offer's country, and do your own spying.
4. I think running sweeps like this on these traffic sources wont yield great results, but that's just me.
5. Make decisions quick, spend the money quick, don't spend too much time on a dud. I know you are new though, so you could spend more time on it, but as you get more experienced, you need to launch, spend, look at data, optimize, etc. very very quickly!