Can I apply more than $3000 carryforward capital loss in future years against capital gains?

Having a hard time finding a straight answer.

I know I can only apply $3k carryforward loss against ORDINARY income, but what about capital gains?

Example: A trader has either a great year or a terrible year. He makes $1M LOSS in year 1, then has $1M GAIN in year 2. He repeats this pattern for 10 years.

Without taxes involved, he'd be at breakeven.

But if he can ONLY deduct $3k in carryforward loss against future capital gains, then he'd pay a big tax bill on years he has $1M gains, but only can deduct $3K from prior year losses, which doesn't make any sense to me.

Can someone please enlighten me!