"Unfortunately there are some high profile bonsai artists (maybe just one) that are not only promoting their "Naturalistic" preference but also thumbing their nose at anyone who adheres to a more Japanese school of thought."
This is an unfortunate take on the advice being offered here. BC works so well in "natural" styles because of its peculiar growth habits. It tends to be apically dominant. It grows vigorously at angles--angular growth in the apex is a particular trait--look at the photos of wild BC--ALOT of right angled upper branches.
This tendency can frustrate "traditional Japanese" methods. It has been used for some time as bonsai material in Japan, where it is known as "feather robe pine." It has never been developed adequately there in decades, despite its use. There is rather pathetic looking BC in Kyzo Murata's book "Four Seasons of Bonsai." In the passage accompanying the photo --which is of a formal upright BC--Murata says something like "the wild growth of the bald cypress is mostly unmanageable" but its pretty leaves make up for it, or something like that. BC is VERY manageable, if you know WHY it grows like it does. The Japanese just don't know how to make the tree work for them.
Naturalistic style is more effective on bald cypress because it harnesses what the tree wants to do naturally. Imposing a rigid Japanese triangle on it won't solve that issue.
I'd skip the sphagnum moss in the soil. It's not substantial enough to anchor much of anything in the pot. Plain old bagged topsoil, along with bark chips and 20 percent haydite or pumice will work fine. Skip the moisture control additives. They are unsightly and mostly useless.
Where to chop it? If you're set on the formal upright design--I'd chop half way up (or a little less) and wait for a new leader to pop--then pull it into position, wait until it thickens, chop the leader, pull up a new one, etc. until you've got taper.
