This method work perfectly.
Thank you for passing this info to us.
I see you are not replaying to this thread anymore, I even pmed you with no response

I hope you can answer my below question...
Should I build high quality links to the new domain or to the old domain ?
Hey mate, I've messaged you back. Sorry I've got a new job and been a bit busy.
In regards to the question. I don't think it really matters what you decide to do since it works as a funnel.
But what I'm going to do is build links to the new domain. However, I'm only going to do so when I feel the ranks are going down. If they're not I don't plan to touch it. This works well because I use PBN links. They work fast and efficiently so it doesn't matter if I wait until the ranks start going down a bit.
But either way I'll be building to the new domain and when and if I get hit again I'm going to 301 both domains to a third new one. But I will 301 only the 2nd one first, see where the ranks take it with the 301 from site A to Site B. If it ranks well I'll keep it like that so it's 3 levels deep.
However if it doesn't rank as well then I'm going to 301 Site A and Site B both to site C.
I'm doing this all whilst re-creating my profitable site on a fresh domain and getting it ranking again. Then when that one does get hit as well I'll do the same thing all over again. I have no idea what Google's going to do, but doing this at least I won't have much downtime on my earnings. Really if you found a niche that's profitable, you should be able to get another one ranking again in not much time.
Also to the people that are messaging me and flaming me saying this is a waste of time, this one's for you:
I'm sure you can tell when I got hit and when it recovered.
I hardly think a $10 domain and 1 hours of work is a waste of time if this is going to be achieved by recovering your domain.
I'm happy to make this another 10 times even for a days worth of earnings, it's really quick and hardly a waste of time if you're making money.