Good job, indeed this is where you can set your custom sorting criteria, you just have to specify it in the proper format for example: PublicationDate ASC
or PublicationDate DESC
One last thing - please note that we will introduce an advanced lists module with our Sitefinity 4.1 release, which might suit your needs even better.
I hope you find this information helpful. If you need any further guidance related tot his matter, please write back.
the Telerik team