A device for generating a pilot signal for use in a wireless repeater where the pilot signal is added to a transmit signal for transmission includes a pilot power control unit configured to set a power level of the pilot signal as a function of a gain of the repeater and a power level of the transmit signal, where the function comprises a linear or non-linear function. In one embodiment, the operation of the repeater may be divided into gain regions and the inserted pilot power is controlled according to the different gain regions of the repeater. When the repeater gain is low, the pilot power may be set greater than the transmit power to ensure there is sufficient signal to use for channel estimation. When the repeater gain is in steady state, the pilot power may be set to be lower than the transmit power to avoid interference.