Now that I know that you want to make a watermark I would do things differently - and simpler.
- Create your watermark logo in a single colour (like black). Does not mater if it is text, painted, or a shape from a path so long as it is on its own layer and a single colour.
- Goto Filter>Stylize>Emboss.
- Adjust the sliders for the effect you want.
- Change the blending mode of your watermark layer to Soft Light.
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