Abstract
Theories of the measured homodyne current generated by a stochastic Schr\"odinger equation (SSE) can be tested in a simulation of the Einstein-Podolsky-Rosen (EPR) correlations for a two-mode squeezed state. We carry out such a simulation, and determine the correct stochastic term for the measured current in the broad-band limit. Stratonovich rather than Ito stochastic noise agrees with experiment. We show that this is relevant to measurement noise and errors in quantum technologies. By analyzing the SSE trajectories as measurement settings are changed, we propose a modern version of Schrodinger's gedanken experiment, where one measures position and momenta simultaneously, ``one by direct, the other by indirect measurement''.