Tasker: remove security lock when smartwatch is connected

This is a partial answer because sadly, the bluetooth in my devices doesn't connect to each other automatically.

Once you're done with the device trigger (Profile) you have to create a task. Following can be one of the tasks to reach the objective in question:

Go to TASKS → Enter a name → + → Code →Run Shell. Under Command field, type:

input keyevent 26; input text pin/password; input keyevent 66

Note that as per this manual, 224(in place of 26) should work to awake the device but it worked out only on my Lollipop based ROM and not on Kitkat and JellyBean. Keyevent 26 and 66 are to toggle the wake/sleep state of device and simulate Enter respectively.

As I already mentioned in my comment, there shouldn't be a need for Tasker to do this in Lollipop, since the latter has a Smart Lock feature that will automatically unlock the device one the trusted device(Smartwatch here) is connected to bluetooth of your phone.