Described herein is a method of automatic gain control and simultaneous digital correction of three types of variations in I/Q receivers: gain imbalance, phase imbalance, and DC offset. Three adaptation loops can operate simultaneously and use the output of an analog to digital converter (ADC) as their input, with the output driving digitally controllable analog components. With appropriate knowledge of signal statistics, the algorithm automatically optimally fills the ADC's full input signal range, providing an automatic gain control function and thus maximizing the signal-to-quantization-noise ratio. In so doing, it corrects gain imbalances between I and Q paths, while additional circuitry corrects DC offsets and phase imbalances.