Hello, I want to create an auto fire hotkey, but I'm not sure how. What I want to do is when I press "e" once keyboard maestro will send out a mouse click that loops forever. When I press "e" again the mouse clicks will stop. I'm not sure how to start.

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Create two macros.

Macro 1
Trigger: e
Action: Toggle Enable of Macro 2

Macro 2:
Trigger: Every 1 second
Action: Click Mouse

Note that your Mac will be almost unusable with that macro running, so be quite careful. And canceling the macros wont help since it triggers every seconds, so quitting the Keyboard Maestro Engine is the only option to stop the macro.

Launching the Keyboard Maestro editor with all the modifiers down will quit the Keyboard Maestro Engine.

Huh so it was that easy. Thanks for the help.

How do I set the trigger to "Every 1 second?"

That's the periodic trigger, set up like this: