Okaysies.
Correct
alternate picking should come almost exlusively from the wrist, not the elbow, not the fingers, the wrist.
Drop your hand down to your side, notice the shape of your hand. This is your MOST relaxed hand position, and the way you hold the pick should be as similar as possible to this.
Try not to anchor. Practice your picking with the whole arm floating over the body of the guitar. This reduces tension in the arm. You'll get tired fast, and it will be pretty sloppy for a start, but after a while, your muscles wil develop more and you will eventually be more accurate, cleaner and faster than before. If you feel compelled to anchor some part of your arm, make it your forearm, and just rest it lightly, DO NOT press it into the guitar.
Look at some free floating pickers to get an idea of it (Shawn Lane, Chris Impellitteri, Paul Gilbert,
Rusty Cooley)