You keep saying conforming cloth and not dynamic cloth - that may confuse people :)

I think the problem is that it is totally horizontal in the starting pose, I would model it hanging down. This way, the gravity will get so much force that it will wrap around the figure.

You CAN try to lower the gravity settings, but I'm not sure it will be enough.

Did you model the cape yourself? It so I would consider making it as a more vertical model.Perhaps keep this for flying poses, and use the other one for standing :) 

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You just can't put the words "Poserites" and "happy" in the same sentence - didn't you know that? LaurieA
  Using Poser since 2002. Currently at Version 11.1 - Win 10.