US Oil (WTI) Lot Size Calculator for Topstep

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Instrument Guide

US Oil (WTI) presents unique position sizing challenges due to its high volatility and geopolitical sensitivity. With an average daily range of 1.5 points ($150 per lot), crude oil can experience rapid price swings that demand conservative position sizing compared to forex majors. The 1.5-point average daily range translates to significant dollar movements. A typical swing trade might use a 50-100 point stop loss to avoid getting whipsawed by intraday noise, while scalpers might risk 20-30 points. These wider stops mean smaller position sizes to maintain proper risk management. Worked example for a $50,000 account: At 1% risk ($500), with a 75-point stop loss, you'd calculate: $500 ÷ (75 × $10) = 0.67 lots maximum. At 2% risk ($1,000) with the same stop, you could trade 1.33 lots. Always round down for safety. For day trading, consider using 30-40 point stops during active sessions, allowing for larger position sizes. A 1% risk with a 40-point stop on the same account allows 1.25 lots. Crude oil's contract specification is straightforward - each lot represents 1,000 barrels with $10 per point movement. However, be aware of storage cost implications for longer holds and how inventory data, OPEC decisions, and geopolitical events can trigger violent moves that exceed normal daily ranges. This instrument suits experienced prop traders who understand energy markets. The volatility provides excellent profit opportunities, but novice traders often underestimate the position sizing requirements. Oil's correlation with USD and its role as an inflation hedge means it can move independently of traditional risk-on/risk-off patterns, making it an excellent portfolio diversifier when sized appropriately.

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