A system for optimizing signal quality in an optical communication system is provided including a transmitter for converting digital signals to optical signals, the transmitter including a transmitter digital signal processing chip including a pre-distortion logic and a transmitter look-up table (LUT). A receiver is operatively coupled to the transmitter for receiving and converting the optical signals from the transmitter to digital signals. The receiver includes a receiver digital signal processing chip including a correction logic and a receiver look-up table (LUT). The transmitter LUT is constructed by scaling the receiver LUT by a weight factor and is iteratively updated based on a weighted sum of the receiver LUT.