I've triggers on my side with big ass patterns to highlight damage.
In CMUD XML format they look like:
to highlight my damage:
<font face="lucida console" color=darkblue><trigger priority="2030" case="true" regex="true" id="87">
<pattern><![CDATA[^(Your? .*) (miss|misses|scratch|scratches|grazes?|hits?|injures?|wounds?|mauls?|decimates?|devastates?|maims?|MUTILATES?|DISEMBOWELS?|EVISCERATES?|DISMEMBERS?|MASSACRES?|MANGLES?|\*\*\* DEMOLISH \*\*\*|\*\*\* DEMOLISHES \*\*\*|\*\*\* DEVASTATES? \*\*\*|=== OBLITERATES? ===|>>> ANNIHILATES? <<<|<<< ERADICATES? >>>|UNSPEAKABLE|toasts?|parches|parch|heats?|blisters?|burns?|roasts?|smolders?|scalds?|singes?|BROILS?|SEARS?|CHARS?|RAZES?|TORCH|TORCHES|\*\*\* BLASTS? \*\*\*|\*\*\* SCORCH \*\*\*|\*\*\* SCORCHES \*\*\*|=== INCINERATES? ===|>>> CAUTERIZES? <<<|<<< CREMATES? >>>|concerns?|disquiets?|daunts?|scares?|jolts?|startles?|flusters?|alarms?|stupefy|stupefies|DISTRESS|DISTRESSES|DISTURBS?|STAGGERS?|RATTLES?|FRIGHTENS?|\*\*\* TRAUMATIZES? \*\*\*|\*\*\* HARROWS? \*\*\*|=== TERRIFIES ===|=== TERRIFY ===|>>> HORRIFY <<<|>>> HORRIFIES <<<|<<< PETRIFY >>>|<<< PETRIFIES >>>) (.+)$]]></pattern>
<value>#PCOL @MyHitsColor %x1
#PCOL @MyDamageColor %x2
#PCOL @MyHitsColor %x3</value>
</trigger></font>
to highlight enemies damage
<font face="lucida console" color=darkblue><trigger priority="2040" case="true" regex="true" id="88">
<pattern><![CDATA[(misses|scratches|grazes|hits|injures|wounds|mauls|decimates|devastates|maims|MUTILATES|DISEMBOWELS|EVISCERATES|DISMEMBERS|MASSACRES|MANGLES|\*\*\* DEMOLISHES \*\*\*|\*\*\* DEVASTATES \*\*\*|=== OBLITERATES ===|>>> ANNIHILATES <<<|<<< ERADICATES >>>|toasts|parches|heats|blisters|burns|roasts|smolders|scalds|singes|BROILS|SEARS|CHARS|RAZES|TORCHES|\*\*\* BLASTS \*\*\*|\*\*\* SCORCHES \*\*\*|=== INCINERATES ===|>>> CAUTERIZES <<<|<<< CREMATES >>>|concerns|disquietes|daunts|scares|joltes|startles|flusters|alarms|stupefies|DISTRESSES|DISTURBS|STAGGERS|RATTLES|FRIGHTENS|\*\*\* TRAUMATIZES \*\*\*|\*\*\* HARROWS \*\*\*|=== TERRIFIES ===|>>> HORRIFIES <<<|<<< PETRIFIES >>>|UNSPEAKABLE)( things to)? you(.|!)$]]></pattern>
<value>#PCOL @EnemyDamageColor %x1</value>
</trigger></font>
And I leave third party damage colors untouched (so they are shown dark red by CF).