Hey my name is Tyler and i've recently started focusing on my alt picking as it was really sloppy on account of my impatientness to initially learn guitar. I have recorded a short clip of me playing a lick from the alternate picking guide here on ultimate guitar. Please note its slow so as to allow it to be easier to see my technique. My question is am I doing it right or wrong? My main concern is with my pointer finger on my left hand and whether I should keep doing what im doing or bar the 5th fret.

yeah it feels natural to me and my old guitar teacher says its a method for muting notes so I guess i'll stick with my technique and just work really slowly lol
We can't see your picking hand btw, kinda a prerequisite for alt picking questions.

Regarding the left hand, you really want to be playing that in "classical" position - http://www.youtube.com/watch?v=ZcIZaZthqbg

Currently, your little finger is going batshit crazy - it goes all the way between totally curled up and totally extended in that lick, that's massively inefficient. Also note that your third finger is curling up badly when you use the pinky - that's partly posture, but you also need to work on your finger independence. http://www.youtube.com/watch?v=CvhZ80OsuTQ

The first finger should move from string to string with this kind of thing, it's much cleaner.
meh i've been told to just do what feels natural and thats the most natural grip for me lol another question that doesnt get explained in your finger independence video.. what do you do if your fingers lift up when using another finger? Because whenever I go to use my ring finger the pinky curls like a mofo haha
Less effort to hold the pick = better.

Holding a plectrum isn't a very natural thing, it's not even the way the guitar was designed to be played.

Also, you want finger independence - so if a finger lifts because another finger does something, you need to go super slow and concentrate on keeping it relaxed. Not keeping it "down", but keeping it relaxed. You only really need to do finger independence stuff 10 mins a day for it to really pay off.