Wave energy has the potential to be a major provider of renewable energy, especially in the UK. However, there is the major problem of producing efficient devices for a wide variety of sites with different operating conditions. This article addresses the time domain modelling of a heaving point absorber connected to a hydraulic power take-off (PTO) unit in regular waves. Two cases for the hydraulic PTO unit are considered: an ideal model and a model containing losses. Component losses are included to give a more accurate prediction of the maximum power production and to discover if the parameters to optimize the device change when losses are included. The findings show that both cases are optimized by varying the size of the hydraulic motor and the optimal size is only dependent on wave period and the trend is the same for both cases. Results also showed that to maximize the power produced for both cases, there is an optimal force that the unit produces, which can be derived from theory. Finally, power reduction as a result of the hydraulic losses is also observed with efficiencies reducing at larger wave heights.