pic: Shielded Encoder Cable 1

[Ether]

Originally Posted by Nikhil Bajaj

Don't forget to ground the shield wire! Otherwise it won't work as well!

He addressed that here:

Originally Posted by KrazyCarl92

The aluminum foil is twisted at one of the ends of the cable, and grounded to the source ground (the jaguar 5 pin connector's ground in this case). It is important to only ground one side of the cable and not both, otherwise you could create a closed circuit, which may cause EMI if there is current going through the foil. My sources say you could also get away with grounding to the frame, but I don't think this is legal and it is usually better practice to ground it to a source anyway.

[DonRotolo]

And ground it only at one end, lest you induce a ground loop. In genral, practice is to ground it at the controller end, not the sensor end.