Adaptive building envelopes (ABEs) enable the dynamic response of building enclosures to environmental conditions. Movable window insulation is a powerful adaptive technique, but its potential has not been sufficiently explored. Based on a case study, an insulated shutter system with a double-layer façade capable of adapting to varying environmental conditions, especially the hot days and cold nights of the desert, was investigated. Specifically, the control operation schedules of different facades and layers were based on temperature and solar position to maximize energy efficiency, daylighting, and thermal comfort. Dynamic shading simulations were used to optimize the façade performance. Subsequently, temperature thresholds are established based on the optimization of vital parameters like Useful Daylight Illuminance (UDI), Energy Use Intensity (EUI), and Predicted Mean Value (PMV). Moreover, two complementary physical models were tested to evaluate natural ventilation and the physical mechanism of operation respectively.