Here's a comment about Forex Autopilot that I ran into today:
"I am very unhappy with the program. It opens up trades without a stop loss... I currently have an open trade with a loss of -340 pips."

Yes, the 340 pips drawdown could be considered a bit too much by most daily trading "standards" although if you look at many other popular solutions like Cindy's signals (Cindy Sinclair of topforexreview.com) she also often sends out signals with "Stop/Loss: OPEN" or a stop loss of over 300 pips.

As far as ForexAutopilot goes, as was explained by one of the software developers in some forum, I think on FF: the program does have an internal stop-loss (a.k.a. programmatic stop loss), that is, the EA algorithm monitors all open trades and takes into consideration the current state of the account and closes losing trades at some point based on internal criteria.

Even though this offers some re-assurance to those concerned about the robot opening trades "without a stop-loss", this can still be not enough of a safety measure because if your internet connection or computer dies then you are left unprotected, as the trade will be open on the broker's end without Forex Autopilot being able to monitor it (until you reconnect). In most cases it's no big deal, if you are able to reconnect quickly as the price rarely changes very dramatically over the course of a few minutes (unless it's news time).

But overall I agree that it is kinda dumb that Forex Autopilot don't have a real stop loss for all trades, even if it were 400 pips, still it is better than nothing.

Having said that - what it comes down to in the end is it's all about money and risk management:

For example, if you have $2000 account and you want to be able to withstand, e.g. a 390 pips draw down and not risk more than 4% of your account, then you can only trade with 0.02 lots. For those who are more used to mini lots - 0.02 standard lots will be 0.2 minilots or 2 super-mini lots (I think there's also micro-lots? or is it the same as super-mini? not sure...)

Using 0.02 lots your max. potential loss will be:

   0.02 Lots * 390 pips * $10/pip = $78

(plus e.g. $0.60 for the spread for a total of under $80 which is exactly 4% of $2000).

One analogy that always comes to mind when I think about forex software tools, including Forex-Autopilot.com: it's just like buying a car - yes, it will get you places, and much faster than walking but you still need to learn how to drive and have an idea about traffic signs and regulations.

The problem is most beginner traders never make an effort to educate themselves about even the basics of Forex and start trading with 10-15% of their accounts, looking for a quick buck. And that would indeed spell disaster in the above scenario.

A few practical tips I can recommend to all Forex Autopilot (FAPS) users is - keep in mind that this software trades aggressively, sometimes with big drawdowns and follow these steps to protect yourself against losses:

1. Even though Forex-Autopilot won't place a stop loss on it's trades it does not mean that you can't do it yourself. Click on the open trade in your MetaTrade terminal window and add a stop-loss (e.g. 200 or 300 pips, perhaps will need to do some back testing to figure out the optimal value).
2. Use the above formula to calculate your allowed lot size to use e.g. 3% or 4% account risk. Never trade with more than 5%. Even 5 is too much in the case of Forex Autopilot because, as I mentioned above, it does trade quite aggressively.
3. Note that the above formula is good for all xxxUSD pairs where USD is the quoted currency but for the other pairs you will have to calc. the value of one pip per lot based on the current price of the pair, e.g. the price of one USDCHF pip when USDCHF trades at 1.0411 is $10/1.0411 = $9.605 per each standard lot traded)
4. (this should have been 1 but anyway...) Make sure your broker allows enough fractions of a lot (e.g. allows trading with as little as 0.01 lots) so that you can actually apply the above calculations in practice. This is especially true if you don't have too much money in your account, I would say that it is not practical to use the FAPS Autopilot software with less $1000 deposit...