A position-sensing system magnetically senses the position of a piston rod moving with respect to a cylinder. A magnetically hard layer on the piston rod provides a recording medium. Information is magnetically recorded in regions of the magnetically hard layer. These regions provide a relative encoding scheme for determining the position of the piston rod. Magnetic-field sensors are positioned over redundant tracks of magnetically recorded regions. Each magnetic-field sensor positioned over a given track senses the same magnetized regions while the piston rod moves with respect to the cylinder. Other magnetic-field sensors can sense ambient fields for use in performing common-mode rejection. A write head can dynamically repair damaged or erased regions detected by the magnetic-field sensors. Energized by a battery-backup power source, the magnetic-field sensors and associated circuitry can continue to track movement of the piston rod when the machinery is off.