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lackofcheese comments on Announcing the 2014 program equilibrium iterated PD tournament - Less Wrong
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Oh, yes, of course; the best response to TFT-1 is clearly TFT-2, and so on.
As for how well strategies do, while it's clear that it will depend on the strategies of other contestants and in that sense there cannot be a "best strategy", I think one can do better - for example, if there's a Nash Equilibrium strategy that isn't simply (Defect, Defect).
At a bare minimum, you can improve upon TFT by also making sure it defects against CooperateBots, and doesn't wait until the second turn to defect against DefectBots. Of course, there may indeed be JusticeBots out there who punish you for defecting against CooperateBots...
That's assuming that the new algorithm can correctly identify its opponents. Also, if other algorithms correctly sense that yours is opportunistic, they might change their strategy to your detriment.