A method is described that automatically eliminates eye movement artifacts from EEG records and creates an extracranial reference electrode in one single process. The usefulness of this method is illustrated for both standard EEG recording as well as for CNV and P300 potentials. The artifact signals are measured with a special set of electrodes and are combined in order to subtract the artifacts from contaminated EEG records. The subtraction ratios are determined as those that minimize the variance in the result corrected EEG signal.