@theskeindhu AAO has both setups.  Ranked is LHTR-only, but you can play OOB and LHTR in free-play.
I am currently like #5 in Gold League with Allies, and ~8-2 (admittedly, I’ve only fought like 3 competent Axis Players, beat 2 of them lost to 1.  The second loss I have is because I lost the West Russia fight R1 and ragequit rather than play the game out).  Allies can win quite comfortably in LHTR if you know what you’re doing and don’t get diced.
Under LHTR, you might as well just stay in and kill the entire DEI Fleet.  You have pretty good odds at achieving this if you killed Ukraine R1 and Germany failed to take Egypt G1 (they usually do.  The most common opening I’ve seen is an ampib against Trans-Jordan).
FYI, the Australia navy has a CR in it IIRC, not a DD.
Calcs:
Best Case Scenario:
2 FTR (1 from Egypt + 1 from India fleet)/1 CV/2 CR/1 SUB Vs. 1BB/1 CV/2 FTR
A. survives: 55.1% 	D. survives: 43.3%
Good enough odds to pursue.
Assuming Germany gets Egypt G1:
1FTR/1 CV/2 CR/1 SUB Vs. 1BB/1 CV/2 FTR
A. survives: 24.4% 	D. survives: 75.7%
You lose everything but Japan only keeps a FTR/BB on average, assuming they didn’t stick with the (atrocious) default casualty profile, in which case they’ll take the CV after the FTRs, which often times leads to UK winning/drawing.
Strafing the SZ37 Fleet isn’t worth it, IMO.  Whatever survives the attack will run off to join the rest of the IJN and from that point on you have 0 chance of killing it until late game.
EDIT:  There isn’t a second UK SUB in the Pacific, even under LHTR.  Bad on me.  Changed the Calc to reflect that.