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The paper deals with an application of the modified Nussbaum Gain in connection with the adaptive stabilization of the process with completely (i.e. in the magnitude and sign) unknown high frequency gain. The original idea of the Nussbaum gain is to invert the sign of the gain of the controller periodically and to increase its gain. The stability of such schema was proved for first order systems. The proposed modification is to increase the period of the changing sign rather than the gain of the controller. The idea was applied to the adaptive stabilization of an undesired lateral motion of the balloon gondola. Laboratory experiments have shown higher damping of undesired oscillations in comparison with standard adaptive notch filter approach.