A degraded pseudo-random rotating sensor includes a code disk (2) which comprises a time code track (8) and a pseudo code track (9). The pseudo code track (9) is encoded by using a degraded binary pseudo-random sequence on an entire circle, that is: (1), a close loop is composed of a binary code sequence of m bits on an entire circle, representing that the entire circle is divided into m equal shares in which m is a positive integer; (2), a sequential binary code of n bits is selected as an angular position code, n≥ 4; (3),m2n; (4), the angular position code which is composed of a sequential binary code of n bits selected arbitrarily is unique, and m of different angular position codes correspond one by one to the angular position of m equal shares which are equally divided on the entire circle.
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