YoungJohn,
I think of it as 4 degrees BTDC on the EX stroke. As I remember, the intake is closing and the exhaust is opening and they will definitely cross paths. But, if you think of it in terms of stroke, the ex is on its way open.
There is nothing wrong with setting it a TDC. Many have done so. When the Factory did the dyno testing they got the best performance by setting the crossover at 4 degrees BTDC. On the Racer I get the best performance at 7 degrees after TDC. Short of dyno testing you can set it between TDC and 8 degrees BTDC without too much worry. 4 degrees is a good target because it is what we all expect and try for on a street bike.
David