An optical receiver system is disclosed. The system includes a local oscillator, a mixer and a processor. The local oscillator is configured to generate a laser signal to indicate a selection of one of a plurality of channels. In addition, the mixer is configured to receive signals on the plurality of channels and to utilize the laser signal to distinguish the signal on the selected channel. Further, the processor is configured to maximize a power level difference between the laser signal and at least one of the plurality of channels based on a total number of the plurality of channels by adjusting the power of the laser signal input to the mixer to limit a noise penalty in the receiver system.