After you have set up the deflection mesh for the frame range you intend to run the simulation (including animating that mesh via armatures), you can now tell the cloth simulation to compute (and avoid) collisions. Select the cloth object and in the Object tab, Physics tab, set the Start and End settings for the simulation frames you wish to compute, and click the Bake button.
Cache settings for cloth are the same as with other dynamic systems. See Particle Cache for details.
If you move or edit the cloth object after you have already run the simulations, you must clear the cache; otherwise, Blender will use the position of the current/cached mesh’s vertices when trying to represent where they are.
Subdivision Surface Modifier
A bake/cache is done for every subdivision level so please use the equal subdivision level for render and preview.
You cannot change Start or End without clearing the bake simulation. When the simulation has finished, you will notice you have the option to free the bake, edit the bake and re-bake
Editing the Cached Simulation
Editing the cached simulation is not currently working, see: blender/blender#77114 for details.