US Oil (WTI) Lot Size Calculator for Quant Tekel

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Oil position sizing requires careful attention to its volatile nature and the $10 per point pip value. With an average daily range of 1.5 points (150 pips), WTI can move significantly within a session, making stop loss placement crucial for survival. Unlike forex pairs with tiny pip values, oil's $10 per lot pip value means positions accumulate P&L quickly. A 50-point stop loss - reasonable given the daily volatility - represents $500 risk per lot. This makes precise position sizing essential. Worked example for 1% risk on $100k account: Risk budget is $1,000. With a 50-point stop, position size = $1,000 ÷ (50 × $10) = 0.2 lots. Each point move generates $2 profit/loss. For 2% risk ($2,000 budget): Position size = $2,000 ÷ $500 = 0.4 lots, generating $4 per point. Given oil's tendency for gap moves and geopolitical sensitivity, stops wider than 30-40 points often make sense, but this requires smaller position sizes. The 1.5-point average daily range means 20-30 point stops might get hit on normal volatility, while 50-80 point stops provide more breathing room. For Quant Tekel's rules, oil works well due to strong trending characteristics that can hit the 8% profit target. However, the 4% daily loss limit requires discipline - oil can easily move 100+ points against you in news-driven sessions. The $10 pip value makes it easier to calculate risk precisely compared to some commodity CFDs. Position sizing conservatively is key to surviving oil's explosive moves while capitalizing on its momentum potential.

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