what you have to remember with these products that detoxify ammonia and nitrites is that you will still get an ammonia reading when doing water tests. They don't remove the ammonia, they just convert it into a non-toxic form. The bacteria will get to work on this non-toxic form the same as if it was toxic.
if you have an uncycled with all the correct filtration running and you add ammonia(i.e. adding fish), it will automatically start cycling because you will have specially made media for bacteria to grow on in the filter ocean system. so to answer your question, yes the tank is cycling. I would never advise using Oscars to cycle a tank but this is a bit late for you at the moment. I would suggest that you feed very sparingly. The more you feed the Oscars, the more they will go to the toilet, thus introducing ammonia into the water.
just to add, I would do a 25% more to change every other day, you could go as much as 30%. Just keep an eye on those toxins .the ammonia should start dropping because you will have bacteria building up in your filtration