A method is disclosed for providing a smooth power transition between a variable displacement pump and a variable displacement motor when a mechanical feedback is not provided. The method includes sensing and comparing the speeds of the variable displacement pump and the variable displacement motor based on known maximum volumetric displacements and reducing the rate of change of displacement of one of the variable displacement pump or the variable displacement motor when it is determined that the one is near its maximum displacement position and simultaneously initiating a change in displacement of the other thereof. The subject arrangement ensures that there is no detrimental interruptions of power during the transition of changing of displacement of one of the variable displacement pump and the variable displacement motor to changing the displacement of the other one thereof.