An automated trading plan is a set of exit rules attached to a position before it needs them. Instead of watching a chart and deciding in the moment, you define in advance what gain triggers a sale, what loss triggers a stop, and how much of the position each rule controls.
The simplest version is a single take-profit and stop-loss pair. That is enough for a lot of trades, and it removes the two worst outcomes: riding a winner all the way back to break-even, and letting a loser run because selling makes it real.
Multi-stage plans handle the case where one exit does not fit. A position can sell a third at 2x, a third at 5x, and trail the remainder with a stop that follows the high — three different behaviours from one entry. A moon bag takes this further by deliberately keeping a small unmanaged remainder after the profit stages complete, on the theory that the occasional 50x pays for a lot of small bags going to zero.
Automation cuts both ways, and it is worth being blunt about it. A badly set stop-loss will crystallize a loss that a patient holder would have recovered. A trailing stop that is too tight will sell your best trade of the month during a routine wick. The value is not that automation makes better decisions than you — it is that it makes the decision you already reasoned through, at a moment when you would have been reasoning badly.