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This article presented a novel method of computing the SDFT that we call the modulated SDFT (mSDFT). The sliding discrete Fourier transform (SDFT) is a recursive algorithm that computes a DFT on a sample-by-sample basis. The accumulated errors and potential instabilities inherent in traditional SDFT algorithms are drastically reduced in the mSDFT. We removed the twiddle factor from the feedback in a traditional SDFT resonator and thus the finite precision of its representation is no longer a problem.