A novel winding method is described herein which eliminates the circulating currents for wound transformers. A first layer of a wire is wound about the core at a first set of angles. Next, a loop is pulled to form slack in the wire and the wire is continued to be wound at a second set of angles. The loop provides sufficient slack for the cutting and connecting described further below. The winding and loop pulling continues for s sequences to achieve the desired winding. The wire is then cut at each loop.