So, what should be the best possible strategy to go about links when it comes to Penguin?
From the way i look at it, removing a lot of links can cause some sort of trigger, where it can either confirm Google that you were actually participating in link schemes or you accidentally stand on a wrong foot by removing links which are actually good ones. Removing good ones can cause further drop in ranks, removing bad ones can trigger Google.
What i recomend is, only remove links when you are 100% sure they are not worth it, but at the same time keep on building better and much more qualitative links and let them fight your case in Google's court.
So far, for one of my site, i have concentrated more on building better links, and i got links from couple of pretty big websites, news papers, and sites under 400 alexa, but apparently nothing has made an impact, i see no improvement.
My next phase would be to start removing couple of links which i deem bit spammy or migt try by changing their anchor text! It would have been a lot better if there were regular monthly penguin updates!