My bad, I obviously didn’t understand your question :).
This is exactly what I did:
I formatted my external drive using Disk Utility:
From View I clicked on All Devices
Under External I selected on my drive (WD My Passport 2626 Media) and clicked on Erase button.
Name: Sierra
Format: Mac OS Extended (Journaled)
Scheme: GUID Partition Map
Erase
Downloaded macOS Sierra from: https://support.apple.com/en-au/HT208202.
To install the macOS installer I did this:
Double-clicked the downloaded file (InstallOS.dmg) and double-clicked on InstallOS.pkg and followed on-screen instructions to install it.
Check Applications and found Install macOS Sierra.app.
Followed your instructions:
Next would be to create a bootable USB installer using the createinstallmedia command in Terminal.
Now as I said there is a problem with this returning an error but there is a work around, in Terminal copy and paste the following command, (the Install macOS Sierra.app must be in your Applications folder)
sudo plutil -replace CFBundleShortVersionString -string "12.6.03" /Applications/Install\ macOS\ Sierra.app/Contents/Info.plist
press Return.
now you should use the createinstallmedia command.
Again your Install macOS Sierra.app needs to be in the Applications folder, if you rename your USB stick to MyVolume all you need to do is to copy and paste the command below, or just change MyVolume in the command below to the name of your USB stick.
sudo /Applications/Install\ macOS\ Sierra.app/Contents/Resources/createinstallmedia --volume /Volumes/MyVolume --applicationpath /Applications/Install\ macOS\ Sierra.app
press Return
My Terminal during creation of bootable disk:
Ready to start.
To continue we need to erase the disk at /Volumes/Sierra.
If you wish to continue type (Y) then press return: y (Return)
Erasing Disk: 0%… 20%… 30%… 100%…
Copying installed files to disk…
Copy complete.
Making disk bootable…
Copy boot files…
Copy complete.
Done.
Installed Sierra on external drive:
I shut down my mac and then turned it on and pressed on Option key.
Selected my external drive Sierra (yellow)
Followed instructions on screen.
Selected external drive again (yellow).
Got error “Volume contains an OS X installation which might be damaged”