Abstract: Aiming at the problem of high dynamic input signals for GPS receiver, a dynamic relative tracking loop algorithm is presented in this paper and the pseudo code tracking double-loop was designed. Compared with the approximate maximum likelihood estimation (AMLE) and extended Kalman filter (EKF), the algorithm transforms the absolute dynamic tracking to relative dynamic tracking by using the carrier-aided pseudo code methods. With the use of low order and narrow band phase lock loop, the tracking precision of pseudo code loop is improved and the complexity of application is reduced. The simulation results demonstrate that the performance of proposed tracking algorithm can satisfy the demands of high dynamic GPS receivers.