Unfortunately it doesn't quite work like that, while in theory is should, it simply doesn't
As you lose weight your thyroid slows when on a simple calorie restricted diet, you also have to lower your calorie intake again based on the fact your'e losing weight and getting lighter. I'll leave out insulin spiking because that's unlikely to happen to a great extent if you're calories are down, by virtue of the fact you're unlikely to be eating sucrose rich food sources.
The problem when I used to use the approach you listed, is that it gets really hard the longer you go too. You'll start to crave like mad, although granted some people can do it and find it works for them.
The other problem is bounce back.
It's sound advice in theory, but in practice it's a nightmare to live like that. I've done that kind of diet, VLC diets (before it was popular), low fat, Paleo, keto, cyclagenic Keto etc etc. Paleo and keto are by far the simplest to stick to, and healthy, and the weight should stay off quite easily once your'e down to a desired level.
I've typically found that if you want to find out more about diet, the bodybuilding community are pretty clued up on cutting edge stuff, as are certain sports like running and cycling (competitive).
A diet protocol that's very easy to keep, and worked for a friend who has Chrones and used to compete in both powerlifting and bodybuilding (not at the same time), was to eat three meals a day with two being zero carb and the last one being what ever you fancied. The caveat being you could only eat the last meal in a one hour window. This included any sugar based drinks/ alcohol too. The diet was intended for people who were morbidly obese, my mate wasn't, and he swore by it.