The trans-filter compresses in band AWGN, demodulates input signals and has no threshold due to applied noise. Two frequency selective networks with opposite amplitude vs frequency slopes are designed to remain 180 degrees out of phase over the signal band. Output amplitudes are equal at band center and are summed producing a monotonic amplitude vs frequency characteristic going thru zero at center frequency with abrupt phase reversal. This produces the parabolic output noise density and differentiates applied signals. Absence of nonlinear circuit components and product devices prevents generation of noise×noise products, avoiding the threshold phenomenon. Exponentially modulated digital signals produce output impulses due to the slope and abrupt phase reversal. The impulses have strong fundamental frequency components and may be recovered at baseband without frequency conversion. Cascading trans-filters increases noise reduction and impulse amplitude. The trans-filter algorithm may be used separately or in conjunction with one or more hardware trans-filters.