This may work out great for lucid dreaming but if you are anything like I am the watch will only temporarily incorporate into your dreams and then it will become such a habit that you won't notice it. I did this same thing with a gold ring I found by wearing it constantly and using it in reality checks; it showed up in my dreams for nearly a week because it was something new in my routine, but it became such a part of me that I soon didn't pay special attention to it in dreams because I was used to it. It also makes you rely on the watch to signal you that it is a dream which isn't going to happen every hour of a dream like it will in waking life.

As you will see after spending a good amount of time reading up and learning from this site (if you should choose to do so), one of the main things to be worked on, as Arch mentioned above, is awareness so that rather than hoping that you will spontaneously dream about the watch beeping and use it to RC you will be so aware of your surroundings that you will know it is a dream without requiring some special conditions be met. I have seen that several of our wonderful dream guides here agree with this saying that, depending on what lucid induction technique you use, the majority of lucid dreams begin with you already being suspicious that you are dreaming and then using the reality check to reinforce the idea.

I second Arch's advice to explore the tutorials and guides already here because they are pretty much guaranteed to work eventually considering how many people use them here on DV, but you should also try out the method you created yourself because it may very well work excellent for you. Some people lucid dream the first night they try when they know hardly anything more than what a lucid dream is.