For efficient noise reduction in a Fourier transform ion cyclotron resonance (FT-ICR) mass spectrum, a new algorithm was proposed. The suggested algorithm reduces white and electrical noise, and it improves signal-to-noise ratio. This algorithm has been optimized to reduce the noise more efficiently using the traces of signal level. The algorithm has been efficiently combined with derivative window to improve the resolution as well S/N. Time domain data was corrected for DC voltage interference. $t^n$ window was applied in time domain data to improved the resolution. However, $t^n$ window can improve the signal resolution, it will also increase the noise level in frequency domain. Therefore, newly developed noise reduction algorithm will be applied to make a balance between resolving power and S/N ratio for magnitude mode. The trace algorithm can determine the current data point with several data points (mean, past data, calculated past data). In the current calculations, we assumed data points with S/N ratio more than 3 were considered as signal data points. After the windowing and noise reduction, both resolution and signal-to-noise ratio were improved. This algorithm is applicable more efficiently to frequency dependent noise and large size data.