As an observer I noted you went through your daily loss limit and continued trading... The fact that you might made it all back in that last long will be an incentive for your brain to do it again because in this case it solved an issue. Not meant as a comment but been down that road myself... and it didn't end too well after a couple of times.
Although you are totally correct, I think that schizo is far too experienced. You see, this journal was about showing how its possible to be profitable most days with just a few things. But outside of this journal, I'm fairly certain schizo is doing much more, but who knows more of what. My point is that although you're right that he is breaking a rule he posted, the fact that a trade sets up is the bigger factor. Having a daily loss limit is usually for new traders, in my opinion, who might keep going when they are doing things wrong, so its a way to put on the brakes. But when you're so experienced, you know that any edge might have 3 losses in a row, maybe even 5, and none of this affects anything long term. Its almost unfortunate to stop trading after a few losses because once whatever area is cleared, another opportunity may present itself. The market after all knows nothing about your entries or your losses. Now here is the kicker though. You have to have mastered yourself and your trading for this to work. So in the scope of the firm rules of this journal, you are right that he is breaking rules, but in the bigger scope of trading, I think he is more than aware of what he is doing and fully in control. If you saw him adding to losers, if you saw him doubling his size after a loss, etc., these might be things to make you pause. But he is simply taking trades as he seems them and often even says he doesn't look at the PnL until he is done... which to me shows extreme experience and discipline.