To begin the plan, it is necessary to know not only the current position of the Dow-Jones average, but also its history since it last moved out of Zone 4. If the average is in Zone 5, 6 or 7 (the three top zones) when the plan is initiated, "the account should start with the maximum" bond position required in the "highest zone reached since the average last crossed up through Zone 4." In other words, if the average is in Zone 5, but has arrived there by rising out of the middle zone, into Zone 7, and back down, the stock-bond ratio will be that of Zone 7, not Zone 5 (this is, of course, the operating procedure specified by the halfway rule). Similarly, if the average is in Zone 1, 2 or 3, the account must begin with the maximum stock position called for by "the lowest zone reached since the market last crossed down through Zone 4." If the average is in Zone 4 when the plan is launched, however, the ratios depend on whether the market is falling or rising: if the average rose into the middle zone, the stock portion should be the maximum stock position called for in the lowest zone previously reached by the average; if the average declined into Zone 4, the bond position should be that of the highest zone reached. Adjustments are made, if called for, at regular quarterly reviews of the account.

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