I Love Using Small Live Fish To Freshly Caught Squid & Octopus!
I'm a firm believer that local predators know their local prey. I started fishing buying frozen squid boxed from California, which was ok. I've tried chicken to pork. Not the best but i had strikes. The best bait was live local caught fish to crab. But if i don't have live bait i've found purchasing live to fresh caught local species like limpets to squid instilled confidence in my catching abilities, or lack thereof.
I found preserving the colors in squid helps. Salting was ok but freezing the squid by first bursting its ink sack was the ticket! Its not the easiest bait to find but when i do find some i purchase around 10lbs as too much bait means spoilage. As you can see in this video the colors are well preserved. Just got to look around if you're not a diver unless you know how to collect bait. For me i don't have the time as i work 7-days a week.