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This paper investigates the positioning of the pilot symbols, as well as the power distribution between the pilot and the communication symbols in the orthogonal time frequency space (OTFS) modulation scheme. We analyze the pilot placements that minimize the mean squared error (MSE) in estimating the channel taps. This allows us to identify two new pilot allocations for OTFS. In addition, we optimize the average channel capacity by adjusting the power balance. We show that this leads to a significant increase in average capacity. The results provide valuable guidance for designing the OTFS parameters to achieve maximum capacity. Numerical simulations are performed to validate the findings.

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