The rapid progress in quantum hardware is expected to make them viable tools for the study of quantum algorithms in the near term. The timeline to useful algorithmic experimentation can be accelerated by techniques that use many noisy shots to produce an accurate estimate of the observable of interest. One such technique is to encode the quantum circuit using an error detection code and discard the samples for which an error has been detected. An underexplored property of error-detecting codes is the flexibility in the circuit encoding and fault-tolerant gadgets, which enables their co-optimization with the algorthmic circuit. However, standard circuit optimization tools cannot be used to exploit this flexibility as optimization must preserve the fault-tolerance of the gadget. In this work, we focus on the $[[k+2, k, 2]]$ Iceberg quantum error detection code, which is tailored to trapped-ion quantum processors. We design new flexible fault-tolerant gadgets for the Iceberg code, which we then co-optimize with the algorithmic circuit for the quantum approximate optimization algorithm (QAOA) using tree search. By co-optimizing the QAOA circuit and the Iceberg gadgets, we achieve an improvement in QAOA success probability from $44\%$ to $65\%$ and an increase in post-selection rate from $4\%$ to $33\%$ at 22 algorithmic qubits, utilizing 330 algorithmic two-qubit gates and 744 physical two-qubit gates on the Quantinuum H2-1 quantum computer, compared to the previous state-of-the-art hardware demonstration. Furthermore, we demonstrate better-than-unencoded performance for up to 34 algorithmic qubits, employing 510 algorithmic two-qubit gates and 1140 physical two-qubit gates.

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