In this paper, a digital hydraulic variable control method based on multi-way valve spool displacement feedback is proposed, which combines the advantages of low cost and high reliability of the loader fixed displacement pump hydraulic system, and the distinguished energy saving effect of the loader variable pump hydraulic system. Based on the principle of hydraulic resistance, the mathematical model of flow-pressure of multi-way valve was established. Meanwhile, the theoretical structure of a valve spool suitable for digital hydraulic system was deduced. On this basis, an improvement scheme of the valve spool was proposed in combination with machining feasibility. The simulation model of multi-way valve was established, the correctness of which was verified by experiment with the significance test method, and the valve port parameters of the multi-way valve were optimized by genetic algorithm. The simulation model before and after optimization was analyzed by AMESim software. The simulation results showed that the digital hydraulic system can basically realize the function of a variable system, and the energy consumption was significantly reduced compared with the fixed displacement pump hydraulic system. The optimized valve spool structure of the digital hydraulic system had more stable load characteristics than the fixed displacement pump system and a larger speed range. The increase range accounts for about 27% of the total stroke.