In Project Preferences, enable ray tracing. This also enables the GPU skin cache.
In Project Settings, change your default RHI to DX12.
In Project Settings, under Engine > Rendering > Hardware Ray Tracing, check the box for Support Hardware Ray Tracing.

You can also try ray tracing without changing project settings by:

Setting the r.RayTracing and r.SkinCache console variables (CVars) to 1 in the ConsoleVariables.ini file.
Relaunching your project with Direct3D12 enabled using the -d3d12 command line switch.

You also might want hdr.