The temperature indicated on your meter is the temperature at the tip of your exhaust sensor. This temperature is different for each sled on the market.
An engine should never be tuned by exhaust temperature alone. The exhaust gas temperatures are a great tuning aid but they are not the final word. The normal temperature range for most sled will range between 1100°F and 1250°F depending on the engine setup. The temperature indicated should always be correlated with the piston and plug color. Generally, probe location should be between 4 to 6 inches from the piston skirt, the sensor should be 1/4 inch deep into the pipe and the size of the hole should be 1/4 inch. Each sled and exhaust systems manufacturer have their own specifications for probe location and running temperature. To be more precise, these manufacturing companies should be contacted for all the details needed.