Insulin Manipulation?

What's up everyone,

Let me first just start off by saying thanks to all the people in here that helped my figure out a cutting diet, and just a diet in general. Alot of great info in here and a lot of great people. Especially since i used to think that to lose weight just drop my cals down to 1,500 and watch the pounds fly off. Well I did that and what happened was a lot muscle lost! And i looked alot worse even after losing like 15 lbs. Since then I have done a ton of reading, pretty much non stop, I can't get enough of it. So basically what I wanted to do here is lay out a few of my cuting diet ideas and see what you guys thought so I can see if I'm on the right track!

1. One of the keys to weight loss is the manipulation of insulin, i.e. no carbs with fat, also using a timed carb stategy.

If I time my carbs (PWO Dex, PPWO rice,oats, etc...) I am providing my body the insulin spike it needs to feed my muscles and help me grow. This is all basic stuff at this point. However what I want to know revolves around what I do during the day.

What I'm doing is waking up early running low intensity, then about 30 mins later eating a pro/fat meal eggs, egg whites bacon etc....And then I continue to eat pro/fat meals all day. Nothing but healthy fats such as natty peanut butter/flax/fish oil etc... So obvioulsy my body is not producing any insulin at this point allowing itself to burn fat. But here's where I get confused.

I'm thinking that just like anything else in your body, it will try and preserve what its not getting. So if you feed it fat during the day it will tend to let it go because its knows you are going to be getting more, same as food, water etc...With the absence of blood sugar and carbs during the day will my body just use fat for energy? Or is there some other source that it can get its energy from. Obviously It can get it from the foods I am eating but from what i've read the body would rather not try and convert protein to energy. So that leaves it with fat from eating and fat stores.

I have been following this for about 5 weeks now and have lost weight steadily and slowly, nothing dramatic but I'm getting there!! Sorry for the long ass post, and please let me know if i'm on the right track here! Thanks!