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I leave my A4 in 2nd gear around the beach streets up to about 25mph, 3rd for city traffic up to about 50mph, only going into 4th on the freeway or if I'm gonna jump on it... but then the torque converter puts it back into 3rd anyway
Absolutely not. That's why we have paddle shifters, for manual control.
I sometimes just stay in 3rd gear around the track, until the straight aways of course. What is cruicial is that you watch the trans temp.
The object at the track is to keep your engine in the power range and a LS2 makes peak horsepower at 6000 rpm, so you want to max out each gear before shifting. Just becareful not to redline or the ECU will cut power.
I was thinking of Autoxing with my A6 in 2nd gear and with competition mode on.
During normal driving in paddle mode you start from a stand still in 2nd.
So rolling any amount should be fine to leave it in 2nd the entire time right?
Then I could use both hands to steer
It will work fine and not hurt anything to run completely in 2nd.
You will find that most courses will require 1st gear to improve your times but you can get by in 2nd. 1st gear will run out to 50+ mph and 2nd to 80+ mph. It's rare to go into 3rd.
Same thing with Competition Mode -- AH/TC off (hold button 10 seconds) will give better times.
Steering shouldn't be an issue with the paddles at your fingertips if you need to use them. You'll find that using your left foot to brake (go-kart style) will work well once you're comfortable with it.
Also, don't worry about bumping off the rev-limit as that won't hurt it either.