P. K. Hansen,
Most of my experience with coloring epoxy comes from doing pearl & metal inlays on musical instrument fret boards. We used ebony and rosewood. When we sanded the fretboards, we saved the appropriate dust to mix with the epoxy we used to set and fill the inlay. Even with extremely fine powder produced by 1200 grit paper, the fill always looked dull.
We started using liquid aniline dyes when they became widely available. They worked a lot better. The epoxy could be dyed a wide range of colors, and it would polish up to any smoothness desired. These dyes are quite concentrated, so a little goes a long way.
I'm not sure what kind of powdered dye you have. Aniline dye comes in powdered form also. It is generally disolved in liquid and added to the epoxy in the liquid form.
We never worried much about the strength, since most instruments didn't see much abuse. I expect that the loss of strength would depend on how much dye you need to add. The powder would be a concern if it is not disolved first, but I have no direct experience.
Hope this helps.
Bob Couture, the old engineer.