Learn about the Precomputed + Shadows raytracing setting in VRED.
For additional information on Precomputed + Shadows, see the following:
Video captions: Open Render Settings and select the Raytracing Quality tab. Select Precomputed + as the illumination mode in Interactive. Activate Raytracing in the toolbar. In the Precomputed + Shadows mode, HDR is still the basic lighting. Also, real mirroring and reflections are used from the scene. No prepared ambient occlusion is used. Real shadows are calculated on the basic of HDR materials. Open the Material Editor and select the default environment to switch it to Is Visible. You need a surrounding geometry to see the reflections and shadowing of the HDR in your scene. You can now include another surrounding file. You will now see any modification of the shadow cast. Rotate the shadow material around the Z axis and see how the shadows change direction in syncope. Of course, the shadows are being calculated anew and interactively for every geometry. Use the illumination Precomputed + Shadows mode for excellent results with minimal render times.