Continuous loop averaging deconvolution (CLAD) is a new general mathematical theory and method developed to deconvolve overlapping auditory evoked responses obtained at high stimulation rates. Using CLAD, arbitrary stimulus sequences are generated and averaged responses deconvolved. Until now, only a few special stimulus series such as maximum length sequences (MLS) and Legendre sequences (LGS) were capable of performing this task. A CLAD computer algorithm is developed and implemented in an evoked potential averaging system. Computer simulations are used to verify the theory and methodology. Auditory brainstem responses (ABR) and middle latency responses (MLR) are acquired from subjects with normal hearing at high stimulation rates to validate and show the feasibility of the CLAD technique.