To create subscriptions with cycle detection enabled, add the transactional subscription to the databases.
EXEC sp_addsubscription @publication = N'two_way_pub_test1',
@article = N'all', @subscriber = N'CHRISMOF1',
@destination_db = N'test2', @sync_type = N'none',
@status = N'subscribed', @update_mode = N'read only',
@loopback_detection = 'true'
GO
EXEC sp_addsubscription @publication = N'two_way_pub_test2',
@article = N'all', @subscriber = N'CHRISMOF1',
@destination_db = N'test1', @sync_type = N'none',
@status = N'subscribed', @update_mode = N'read only',
@loopback_detection = 'true'
GO