You are doing it right. Power on quad, then tx. There are two versions of the quad that I know of. One has green landing gear, the other is the black one. And the tx are different.
Your trying to calibrate it with the instructions for the H107C. It is in the manual how to calibrate the sticks. Do what it says in Para 5,2. Ignore the red power light.
Do you have the DSM2 version? If so, plug in the quad, hold down the bind button, turn transmitter, wait two seconds and let the bind button go and it should bind!
Never ever reverse the polarity of the motors. They at are made to rotate in one direction and if you reverse the polarity you will screw up the brushes in the motor.