A normalized least mean square with orthogonal correction factors using adaptive gain (NLMSOCF-AG) algorithm is proposed in order to improve the convergence rate and steady-state performance for adaptive transversal equalizers. The particular values of the step-size parameter are obtained that minimize the ensemble-average cost function by analyzing the estimated output-error. The experimental results show that the proposed algorithm has fast convergence rate and small steady-state error compared with the conventional NLMS-OCF algorithm.