Not sure exactly how it works. I would rather use nitrous than cut flow feed to the torque converter, but I believe that's how it works.
If you restrict fluid feed to a low enough level or cut it off completely, the torque converter will start to cavitate. This effectively raises the stall of the torque converter, or more precisely, allows it to slip. A manifold pressure or rpm switch could be used to turn flow back on to the torque converter.
The big problem I see is when you turn off fluid flow feed to the torque converter, it will fill with air bubbles as it starts to cavitate. When you turn flow back on, it would need to fill the T/C as quickly as possible. That would mean a big feed orifice and possibly result in badly controlled T/C operating pressure. If a small orifice is used, the T/C operating pressure could be better controlled, but the refill time will be long, resulting in a soft launch as the T/C fills during the first part of the run. Depending on the car and setup, that may be preferred.