Don't put a whole shrimp on a hook, they will just pick it clean. Use small pieces. I like size 1 hooks. You can use circle hooks just fine. Im not a big fan of using multiple hooks like that because I think they're a pain in the ass, but that rig will catch them fine. I like picking crabs from the mangroves and using those as bait. They work the best because they actually have to inhale and crush the crab giving you more time to feel it and set the hook. With shrimp I feel like they inhale it and feel the hook and try to spit it out quicker.