Yes, you also need second external Magnetometer, most often found in GPS modules. Internal mag will only be used for aligning external Magnetometer. You also need to calibrate all sensors, make sure they are functioning properly baro covered from light and wind etc... You also need to tune PIDs so it does fly great just with Complementary (gyro+accel only). If you have problems with basic setup adding more complexity like position hold won't solve them. It's pretty complicated feature which performance depends on many factors and is not easy to setup without learning a bit and reading wiki/forum.