I want to count the number of ways to color beads of a necklace green and red, such that two adjacent beads cannot both be red. The necklace cannot be turned or reflected, the beads are labelled.
Initially, I tried for a fixed number of red beads.
Let there be $n$ beads in total, $r$ of which are red, so $n-r$ are green. Every bead can have a red bead to its right, so the places for red beads are $n-r$. Hence, the number of possibilities is $$ \binom{n-r}{r}$$
Summing up for all the numbers of red beads, we get $$ \sum_r \binom{n-r}{r} = F_{n+1} $$ However, this is not correct, mainly because for $ n = 5 $, and $r = 1$, the result is $4$ instead of $5$. Writing $\binom{n-r+1}{r}$ doesn't fix the situation.
How can these colorings be correctly counted?
Your argument counts the solutions for beads in a straight line so we can solve this problem in 2 parts by first looking at beads in a straight line and then worrying about beads in a loop.
It is easy to see (using your logic or recursion) that if there are n beads that are in a straight line and do not loop around at the end the number of combinations is a Fibonacci number ($F_{n+1}$). Your argument works fine but a simpler proof is what follows:
For n=1 there are 2 ways, for n=2 there are 3 ways, and in general the first bead is either red followed by a green or green so we sum the previous 2 cases. For example, for n = 3 we can either start with green which gives us 3 situations for the remaining 2 or start with red which forces a green after, leaving us with 2 possibilites for the remaining bead. So the total is 5 possibilites or 3+2. This is the Fibonacci sequence of course, 2, 3, 5, 8, 13... If we use $F_0 =1$ and $F_1=1$ then the n beads case has $ F_{n+1}$ solutions.
Now for a necklace, notice that, any individual bead can either be green which reduces to n-1 beads with no loop ($F_n$ solutions) or be red and a green on either side of it which reduces to n-3 with no loop ($F_{n-2}$ solutions). So in general, the number of solutions when $n\gt3$ is $F_n + F_{n-2}$.