You can avoid the penguin penalty by simply diversifying your back links. Make it look as natural as possible with some seo links mixed in.
For example - most people link to your site naturally - www.yourdomain.com
However, you need to add in some seo links as well, just dont look spammy - ie if your targeting hosting your anchor text should be - hosting, web hosting, shared hosting, shared web hosting, your domain hosting, hosting by yourdomain.com, etc
Now - I am not a professional seo, but I do have some decent affiliate sites that managed to avoid penguin penalties. So do not take what I said as professional advice, but it helped me and hopefully it can help someone else as well.