I've started colour coding players (other than just a colour for good / regs, another for bad and another for very bad) but I'm not sure how useful it is as I can see their stats anyway. My friend has been doing it a lot and claims he finds it useful to colour them based on how many tables they play etc, assuming that if they don't play many tables it's because they're not very good.

What's your strategy for colour coding players and how do you go about it, particularly on pokerstars any advice is appreciated.

I know your screenname and I have you coloured green.

Haha, I'm not sure if you're serious. What stakes do you play?

I try to use green for losing players myself

I have multiple colours for players on Stars.
Two colours for tight passive, tight aggressive.
Two more for loose passive, loose aggressive
One for tight shortstacks, one for loose (bad) shortstacks.
One for decent TAG regulars.

The are a usual addition to HUD stats, because you can immediately see the type of players at a table when you're in the lobby, or when you first sit down. e.g. "Great, I have nits to the left of me and the loose passive fish on my immediate right".

I use green for players who are calling stations or will stack off light.
Orange for aggro players I see bluff raising air, 3 barrel shoving busted draws etc.
Red is for total maniacs.
Purple for nits.

use the abbrv name HEM stat which can be colour coded based on stack size, so short stacks stand out, although for some reason the colour code for this stat isn't working on Stars Zoom tables.

I have reg,vgood reg, nit,fish and ultrafish.

i also have a colour for 2+2 super high stake ballas like joey

One color for me, one color for the rest of the world. ftw

It helps choosing tables

light blue for nananoko and pink for scout, all you need imo

SN afallacy on stars. I did really well with my color coding system. Time consuming at first but after time you'll have 6+ players at each table coded in advance.
Search each player at the table and find how many tables they are playing.
1 table = yellow
2-3 tables = light blue
3-5 tables = dark blue
6+ tables = purple
blocked = green. ( search cash lobby or other sngs at similar stakes to see how many tables each green is really playing)
Always make notes on players willing to bluff/huge donkeys etc. If you see a guy that makes a horrible play. take note of it.

After you have experience with individual players change your color coding based on the info you have.
Red for aggros
orange for semi donks
pink for huge donks.
Light blues for semi solid nits.
Dark blue for your sharks.
Purple for your massive multitabling nits( these guys check fold the turn and river allllot)

OPR ftw ;P aeiuhiaue red is big REG