We will only be working on the first four pegs. Hook a red band over the first peg and twist it once before looping it over the second peg, so it forms a figure eight between the two. Do the same between the third and fourth peg. There should be a space between the two bands so that they don't overlap on a peg (see picture).
Place a silver band in the same figure eight pattern between the second and third peg, bridging the gap between the two red pegs. You should now have one red loop on the first peg, a red and silver on the second peg, a red and silver peg on the third peg, and a red loop on the fourth peg (see picture). These are the only bands that will be twisted into figure eights. The rest will simply be stretched between pegs without any twists.
Place a red band between the first and second peg, and another between the third and fourth peg. You should have two red loops over the first peg, two reds and a silver on the second peg, two reds and a silver on the third peg, and two red loops on the fourth peg (see picture).