A derived house question

1
Can anybody share their experience in using higher order derived derived house in horary? Does it work for you? How many levels would you push it?

When I say higher order, I mean you have to renumber the chart more than twice e.g. "My maternal grandmother's friend's son lost his ring. Could you locate it?". Strict derived house system would look at the 10th house as the significator of the ring.

1st H = querent
10th H = querent's mother
10th of 10th = 7th = mother's mother = grandmother
11th of 10th of 10th = 5th = grandmother's friend
5th of 11th of 10th of 10th = 9th = grandmother's friend's son
2nd of 5th of 11th of 10th of 10th = 10th grandmother's friend's son's ring

Does this really work?

2
I would be tempted to just use the 2nd or 4th for missing/lost objects as it's the ring we're looking for, not the person; the fundamental question being asked is 'Where is the ring?'.