MFI and Volatility

I'd be interested to know the experiences of others, but as far as my first year of Magic Formula Investing goes, I've been a little surprised by the day-to-day and week-to-week volatility of the MFI stocks in my portfolio. You really have to be a believer in the formula, because -- again, based on my own experience -- these stocks tend to jump around a lot. This bothered me at first, but now it is something that no longer phases me. Time and time again, my overall portfolio will drop 1-3% in a day, only to rebound a few days or weeks later. Also, my portfolio crashed this summer (falling well into negative territory), when the Federal Reserve announced that they would continue raising interest rates. I believe this is why it's important to be a true believer in the formula. It gives you confidence to hold on those days when your stocks are falling rapidly. Without that confidence, you are at the mercy of Mr. Market and his crazy daily moods.