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In this paper, we investigate the error rate performance of a multi-relay two-way cooperative communication system with amplify-and-forward relaying over Rayleigh fading channels. We derive a closed-form expression for symbol error rate (SER) in terms of finite-range integrals. This is later utilized to optimize power allocation among cooperating terminals. Exploiting the location information of terminals, power allocation yields performance gains up to 3 dB.