The dwarf cockatoo cichlid has been wildly bred into a number of domestic forms, and the Mega Red Cockatoo is one of those varieties. As a domesticated fish, it is fairly forgiving of water conditions, and will adapt to most any aquarium conditions provided extremes are avoided. In their natural habitat, like most Apistogramma , these fish come from soft, relatively acidic water, and these conditions may be required for successful spawning.
Cockatoos are reasonably peaceful fish, though they are territorial and will protect their favourite coconut shell, cave, or other structure. The males can be aggressive toward each other, especially during spawning. It is not unusual for a younger, 'subdominant' male to take on the colouration and apperance of a female to avoid aggression from the dominant male -- which can be frustrating for those who think they have a pair!
These fish mix well with other small, peaceful fish, such as Glowlight Danios, Hatchetfish, Pencilfish, and Pseudomugil spp. rainbowfishes.