This paper describes a reduction algorithm for SW method which generates test sequences for communication systems. SW method is based upon the Finite State Machine (FSM). SW method uses a set of characterizing sequences and a state transition checking approach. This paper concentrates the characteristics of the SW sequences, and proposes the new derivation algorithm of characterizing sequences. Furthermore, Chinese Postman Tour and Extended Chinese Postman Tour is proposed to reduce redundancy of the SW sequences. This paper also presents an evaluation of this method in terms of an upper bound of the sequence length and generated test sequence length. The evaluation shows that the algorithm dramatically reduces the sequence length of the original method.