We discuss how continuous probing of a quantum system allows estimation of unknown classical parameters embodied in the Hamiltonian of the system. We generalize the stochastic master equation associated with continuous observation processes to a Bayesian filter equation for the probability distribution of the desired parameters, and we illustrate its application by estimating the direction of a magnetic field. In our example, the field causes a ground state spin precession in a two-level atom

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... ich is detected by the polarization rotation of off-resonant optical probes, interacting with the atomic spin components.