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I've noticed my group of cacatuoides tend to school all together, about 10-14 stay together and couple wander off. Are they naturally a schooling fish?
Apistogramma cacatuoides are not schooling fish. Perhaps yours are quite young and/or are new to their tank. In time, a pecking order will develop, and a dominant male and female will emerge. Eventually, it will be necessary to move some of your A. cacatuoides to separate quarters.
A. cacatuoides is a very nice fish; good luck with them!
Yes, they are still young, at about 2-3 months old. They already started showing some colors. But when the pecking starts, I guess some will head to the LFS where majority of them will be sold and die within a few days due to unexperienced owners. But I dont have that much room so such is life.
When young and in larger groups, most Dwarf Cichlids kind of take on certain characteristics of schooling fish. This, in part, is a genetic predisposition and a learned (parentally taught) behavior. This may be due to numerous issues, including protection, food acquisitions, and solialization. Many of the same reasons that true schooling fish stay in groups. They may actually remain somewhat "schooled" until a time that some start pairing off and driving the others away. At that time they break any resemblance to schooling fish and establish territories of there own. The ones that are wandering off are practicing for that time now.
Per Randall's suggestions, cacatuoides should be highly valued by many hobbyists. You should have no problem finding homes for your extras!
Well, I dont have to get rid of them just yet. I'm enjoying watching them school and follow each other. And besides, when I do have to get rid of them, probably earn a few bucks for each while doing so, most people dont pay ~$8 per fish(the LFS price of cacatuoides) if they dont have any experience in keeping fish. So I think things should be good.