$alphatest doesn't support anti-aliasing. Is there a way around it or should I use other options instead?

[dabmasterars]

I know that $alphatest is better for binary transparency (which this texture has), but the lack of AA looks ugly to me. Should I use other options like $translucent and $vertexalpha?
P.S. texture is a decal

 

[Dr. Orange]

You can set "$allowalphatocoverage 1" in the material file to enable anti-aliasing on alpha tested materials.