There are many ways to beat Gary. However, the best way to beat him(or so I think so) is to train your pokemon to a much higher level than his are. But you can't go too high because from your point, if your pokemon are too high of level, they won't obey you in battle. Get your pokemon to about level 30-35 and I don't think you'll have much trouble with him. Good luck with the pokemon league :3
(Traded Pokemon are only effected by the lack of Badge in terms of levels, plus Misty only goes to Lv 30 anyhow.) So just train to about 20/25)).
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Beat misty then go to cerulean cape
just beat red then go to cerulean city then go to the cave
Bottom of Cerulean City
He is in a house in Cerulean City
Cerulean cape is the area north of Cerulean City. It is just north of the bridge that connects the cape to Cerulean City. The cape is any land that is above the Bridge that connects the cape to Cerulean City.