A new coding algorithm which has spectrum notches at the DC and Nyquist Frequency for maximizing the effect of the in-band pilot insertion in order to make the symbol timing or carrier recovery easy is proposed. It is shown that this algorithm uses one encoder and gives the similar spectrum characteristics to that of the existing OF00 code which uses two encoder. In this paper, the proposed new coding algorithm is explained andits spectrum characteristics is compared with the of OF00 code using computer simulation.