A trader should increase trade frequency when the market is generating clear signals, what the speaker calls a 'hot' condition, and pull back when it's 'cold' to avoid eroding gains. There's no fixed limit on daily trades; the right number depends on reading the market's actual heat.
Do you have specific rules of number of trades you're willing to take in a day? Honestly, I don't. For me, what I like to say is if you're hot, step on the gas, because if the market is hot and the model gives you so many entries and ability to take so many entries and you're seeing it clearly, step on the gas, make your money. But saying that, you have to be able to identify when you're not hot. It's not giving you that structure that you need to build out your edge on that day. And that's when you get into that dangerous territory of overtrading and giving back your day or just starting the day off with losses.
