after the penguin update and the lose of ranking, not only for my own websites but i have noticed that all my competitors also lost exactly like i did, and google just brought some news sites and blogs with low quality content and some videos from YouTube instead.
so i started learn about how to fight this penguin without removing bad links. just keep building links in a different way. and here is what i found out
1. use the domain as the anchor text as much as possible. use long tail keywords instead of your main keyword as the anchor text and diversify
2. stop using cheap software to post links to low quality sites, like article directories (with PR lower than 3) and blog commenting on low quality sites or sites with too many comments
3. start focusing on press release, guest posting on high traffic blogs, and network with other bloggers in your niche and exchange links and posts whenever possible.
4. use what Google love, like youtube, Google+ and BlogSpot
5. use the power of the Wiki sites
6. use yahoo answer smartly
7. use Google+ page and facebook pages, they can rank higher than your site and get you traffic.
8. find some HTML sites on your niche and ask to publish a static page on their sites, most will agree, but if not you can offer a one time payment.
9. use the power social media and sharing and ask other members to share your links, you can also use some fiverr offers
i have used some of those strategies on my sites and the change color turned from red to green after 3 weeks, and my ranking is going up, slowly put steady up.
i have also test some of those methods on my new blog and the results are great, especially because i have the keyword as the domain name, so don't be afraid of starting a new blog with your keyword on the domain.
here are some related blog posts that i get the info from
Increase Google ranking after penguin hit
9 Penguin Safe Ways to Dominate Search for Your Keywords A SEO-News Exclusive - SEO News