http://www.quiltville.com/pioneerbraidborder.shtml
Here is a bit of a tutorial on producing a braid.
To place the red squares at the peaks, you will want to sew a red square on one end on one side of your strips for the braid.
The large square is placed on point so that the braid is attached from two sides of the square as you build your braid out from the square. <wave>