It doesn't matter where it's pointing, so long as you can get the cap orientated where #1 is #1.
Standard, as I was taught, is to try and point the rotor at #1 when it's on #1.
In reality, the thing can be pointing at #5, so long as #1 is in the #5 position on the cap.
Know what I'm saying???
You've also not given us enough information on the motor. Alky/gas? Compression? Spark Plug Gap? N/A? Nitrous? Blower/Turbo? What ignition system? Mechanical Advance? Vacuum advance?