The soft decision thresholds in a soft decision forward error correction (FEC) system may be adjusted based on mutual information of a detected signal. In one embodiment, a recursive algorithm may be used to optimize threshold values by maximizing the mutual information. In another embodiment, an adaptive scheme may be used to optimize threshold values based on a pre-knowledge of the noise in the channel. In a further embodiment, an adaptive scheme may be used to optimize threshold values by without pre-knowledge of the noise in the channel.