Question about my new Christmas tree
I think you have to take a closer look at the wiring on those lights. On the picture it is clear that there are at least 3 wires, and the light at the given position only uses one series connection. 

So, by changing the used wire at each spot you already have several LED chains. If one of the wires is common then you have two of them, if they circle back to control box then three.

By activating one line at a time you can achieve several moving effects. And if the LEDs change color depending on current direction you can double that amount.

In short - there is no magical "protocol" involved, just clever wiring.