A process for optimizing the bit and energy configurations of data sub-channels in a multi-channel data transmission signal is disclosed. The inventive process is preferably embodied in an microcode routine executable by a high speed digital signal processor. The routine monitors, analyzes and stores sub-channel signal-to-noise characteristics, determines theoretical bit capacity loadings, evaluates power performance margins, and optimizes sub-channel configurations based on a series of iterative calculations intended to maximize the overall system power performance margin for any given target data rate. Alternatively, for a given power performance margin, the achieved data rate can be maximized. To achieve these results, a number of non-zero bit sub-channels (N.sub.CH) are remembered from iteration to iteration, which results in a more optimal loading of the sub-channels. A unique new approach is also disclosed for deciding which of the sub-channels should be disabled to have a zero bit loading. If adjustments to bit loadings are required to achieve a particular initial target rate, those sub-channels which will have the least effect on the overall system performance margin are adjusted first, so that compliance with system performance margin requirements is better achieved. In addition, an "iteration criteria" count can be incorporated in the process to ensure that the initialization of sub-channel loadings can be effectuated (at least to a very close order) in a predetermined and controlled fashion. The resulting bit/energy loadings can be adjusted to be fully compliant with applicable Discrete Multi-Tone (DMT) implementations of Asymmetric Digital Subscriber Loop (ADSL) protocols.