A device, system and method for adaptively tracking amplitude boundary values of a real time sensor output signal. In accordance with the method of the present invention, an amplitude boundary value, which may be a peak or min amplitude value, representing the current amplitude boundary of the sensor output signal is stored within a digital counter. A two-tap DAC is utilized to convert the digitally stored amplitude boundary value into a reference signal level corresponding in amplitude to the amplitude boundary value. The DAC also converts the amplitude boundary value into an offset reference signal level corresponding in amplitude to the amplitude boundary value offset by a specified multiple of the DAC resolution. The reference signal level and offset reference signal are compared with the real time sensor signal and the digitally stored amplitude boundary value is adjusted in accordance with which reference signal level exceeds the real time sensor signal.