This song works a bit like BINGO where you take one letter out of the word in each verse – but you pronounce the word instead of spelling it out like BINGO. In this case there are two German words that work like this in the song: "wanze" (bug) and "tanzen" (dance). Wanze means bedbug or bug. I translated "wanze" as "buggy" (the diminutive for bug) in my translation to keep it as a 5 letter word like the German word. I used "boogie" for "dance" (the German "tanzen"). I made this decision based on the sound of the words, so that buggy and boogie have a closer sound, like the German "wanze" and "tanzen".

Auf der Mauer, auf der Lauer - German Children's Songs - Germany - Mama Lisa's World: Children's Songs and Rhymes from Around the World  - Intro Image

Notes

Sven Koehler wrote in the comments on Mama Lisa's World Blog page for Auf der Mauer, auf der Lauer...

"I work in pest control trying to prevent the spread of bedbugs in apartments, so I like this version that matches the actual habits of bedbugs, even if it is not a literal translation..."

On the bedpost, on the lookout,
Sits a little bedbug.
She can really boogie,
See the bedbug boogie,
On the bedpost, on the lookout,
Sits a little bedbug.

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Thanks and Acknowledgements

I love how you used "bedpost" to replace "wall". Thanks for sharing your translation Sven!

Vielen Dank!