We describe a new algorithm in a cost effective polarization division multiplexing (PDM) system. Without modifying the existing transmitter, receiver electronics, or softwares, we use a special optical scheme to demultiplex the signal multiplexed and improve it with a conjugated gradient algorithm. We experimentally resume the polarization state with a deviation under 5% and the power loss less than 20 dB which proves the feasibility of the polarization control algorithm in the new polarization multiplexing system.