Use QuickStitch™ + AutoHole 
to fill an area with small stitches in alternating patterns automatically, while also cutting out 'holes' in the area, by clicking in a color area of the picture. If required, use Color Tolerance to select a larger area according to the similarity of adjacent colors.
After the fill area has been created, right-click it to use Fill Area and Line properties to change the fill type or pattern, the density, stitch angle, underlay and compensation, and the border width, density and color. You can also add an applique layer.
Shortcuts
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Quick Create Tab, Fill Area and Line:
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Keys: Alt, Q, H
Create a QuickStitch™ Area with a Hole Automatically
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Select your fill and border type.
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Click the QuickStitch™ + AutoHole
icon. -
Click in the color area you wish to fill with stitches.
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If Color Tolerance is enabled then the Color Tolerance dialog box will appear. Adjust the Color Tolerance as required. The area selected by the Color Tolerance value will be previewed, and any holes in the area will be shown. Click OK to confirm.
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Stitches representing the border and fill pattern set in the Options for Fill Area and Line appear in the area, and any holes detected will be cut out.
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Repeat to place as many fill areas as desired.
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Right-click to deselect, or simply select another Create tool.
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To edit the fill or the border, click the fill area to select it, then right-click it and change the properties in the Fill Area and Line Properties dialog. Click OK to save the changes.