Really? I think it's not quite dark enough, but then I'd say make it match the Equalizer or the Homewrecker's head. Keep that light metal colour along the blade where it sees the most friction.
[Edit] Haha, a ninja'd pic of an Equalizer (and some other cool stuff).
You can also add some rust instead of blood, but I've noticed Valve is VERY subtle about rust. It's basically a few very faint splatters of the orange on the TF2 colour palette. More of a hint of colour than actual rust patterns.
By the way, the wood looks perfect.
Kep