First of all, I am not an expert on this diet and I have only been AD'ing for a little over 6 weeks. However, I have been reading TONS of research on the subject. This diet is still very new to me I am still playing with the ratios. Also, keep in mind what works for me may not work for you.. you've gotta find your own sweet spot.
I started the diet eating a ratio of 35%Pro/60%Fat/5%Carbs but after gaining a few lbs of fat at the beginning and since then learning that this diet is extremely protein sparing I have cut the ratio back to 25%Pro/70%Fat/5%Carbs. I also cut back processed foods such as bacon and sausage and upped my extra virgin olive oil intake. Since making these changes I have noticed a reduction in bodyfat while in a caloric surplus. I have also been experimenting with different types of carbs and eating different amounts of carbs on the weekend (for example, last weekend I ate ~12,000 calories

). I am currently bulking so unfortunately I will not be of too much assistance with cutting.
Regardless of whether your goal is to bulk or to cut with this diet, you should follow the diet strict for the first 4 weeks at maintainance cals and then you can start to cut and manipulate parts of the diet (such as pro/fat ratios, sources of fats, daily carb intake, types of food eaten during the carb-ups, duration of carb-up, etc.). First your body must become fat adapted. Since I have no real world experience with cutting on this diet you must take my advice with a grain of salt. But what I have seen work very well for other people who cut on this diet is to do caloric cycling during the week and limiting your carb-up to only one day a week.
I hope that was at least semi-helpful.. let me know if you have any more questions since there are a lot of different aspects of this diet to be covered.