simple color chase

I did basically this exact same thing not long ago at all and was able to get essentially the exact same effect you're describing by setting it up like this:

If the image doesn't work, you make a step-based effect with your LED's and set the parameter of step 1 to Red, step 2 to Blue, and step 3 to Green, and for each of those steps they are at 100% intensity. 

The advice about trying to use a color pallet is bad advice in my opinion. I tried it and couldn't get it to work. It doesn't appear to be possible to use a color palette as a control for an effect parameter. I could certainly be missing something though. But I know this method works and it seems to be exactly as simple and easy as what you're looking for. Just a simple step-based chase with basically zero effort required.

using palettes in stepbased and absolute effects is very good advice as it easily lets you recylcle colors you already have, and easily lets you modify colors from live. if if you want to use colors other than full red, full green, full blue (i.e. mixed colors) you can get it done with one single entry instead of using multiple entries for multiple parameters.

It would good advice if you were able to do that, lol. Unless someone points out a way to use a color palette as an effect parameter, you’re stuck using the device parameters directly. Typing in a command about a color palette while editing an effect has always appeared to me to be invalid syntax, either that or it just doesn’t have the desired effect.

it's not just theory...

That’s a strange way to have it set up. Thanks for showing me that! I assumed you would have to set a parameter. Silly me, I guess (?).

Since ColorPalett is clear enough the parameter coloumn is not needed.
No Parameter is needed.

The example from ueli is already working as you see it.

Not that it really matters at this point, but the idea is that it's not obvious that the Color Palette goes under the On/Off State boxes. That's because you think about intensity as being off and on, not color. When you say a light is "on", you're not talking about its color: you're talking about its intensity. 99.99% of the time at least.

So that's why it's confusing to want the CP under the on/off boxes.

Not that it really matters at this point, but the idea is that it's not obvious that the Color Palette goes under the On/Off State boxes. That's because you think about intensity as being off and on, not color. When you say a light is "on", you're not talking about its color: you're talking about its intensity. 99.99% of the time at least.

So that's why it's confusing to want the CP under the on/off boxes.

You can even enter beam paletts, focus paletts, ...
Your own imagination is only setting the boundarys. (Behold... maybe EOS do sometimes as well....)

The same works for Absolute Effects as well. And the On/Off is called "State" for a reason. it is just an instance than can be filled with "some" information.

Welcome to EOS wonderland ; )