Use MacBook in Camshell Mode (Lid Closed) without power adapter connected

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Open the terminal and run the below command

pmset -g | grep hibernatemode

Note down the number in safe place, you'll need this later if you want to disable it

Now, run the below commands one by one.

sudo pmset -a sleep 0
sudo pmset -a hibernatemode 0
sudo pmset -a disablesleep 1

If you close the lid of your macbook now, it won't go to sleep mode

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Incase you want to disable this behaviour, run the commands one by one

sudo pmset -a sleep 1
sudo pmset -a hibernatemode <original hibernatemode value from the above step or usually 3 on a MacBook>
sudo pmset -a disablesleep 0