The lunar cycle uses the date set in the controller to figure out the phase of the moon.  It does not simulate a moonrise/moonset as this can easily be done with timers.  The controller uses the max intensity for the timer and takes a percentage of that when not in a full moon.  To get the best results use at least 4% intensity as this will give you 8 different phases of the moon.  If you only use 1%, more than likely, you will have many nights with no light and a few with little light.  

The lunar cycle is not meant to be turned on for all of your timers as doing so will cause your daytime lights to be erratic and dim down when not a full moon.